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IND AS 116 - Illus 32
Financial Reporting
Hi sir I have query in Ilus 32 where we have taken reimbursement by lessor for IDC as lease incentive and reduced from ROU Asset calculation but they same is not reduced in lease liability calculation Why so?? Kindly correct me if my understanding is wrong We are not reducing it from lease liability because it relates to Indirect costs
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Best Answer
CA Suraj Lakhotia Admin
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If the lessor provides an IDC incentive at the end of the third year, then it should be deducted from the lease liability.
CA Suraj Lakhotia Admin
What is the definition of lease liability?
PV of Lease payments to be paid sir... As per Lease payment definition we have to reduce incentive right?
Thread Starter
Barani TharanPV of Lease payments to be paid sir... As per Lease payment definition we have to reduce incentive right?
Lease liability = PV of unpaid lease payments. ROU Asset = Lease liability - Incentive.
CA Suraj Lakhotia Admin
Lease liability = PV of unpaid lease payments. ROU Asset = Lease liability - Incentive.
Lease payment is arrived after adjusting lease incentive only na sir???
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