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Inception Date for Reassessment on Modification
Financial Reporting
"if the lease would have been classified as an operating lease had the modification been in effect at the inception date" Based on this, shouldn't we consider the modification on the inception of the original lease? So the lease term would be 3 years in this case yes? [Video Time Stamp: 16:08] Video Details ------------- Ind AS - CA Final Ind AS 116 Leases #71. Illustrations 49 & 50
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Best Answer
CA Suraj Lakhotia Admin
The test is only for remaining term - assuming that the modification date is the inception date.
Oh ok, understood. Thank you!
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