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Initial Recognition of Finance Lease by Lessor

Accountancy

Hi sir, hope you're well In lessee's POV, we capitalize asset at lower of FV and PV of MLP. Why do we straight away take net investment as capitalized value here for lessor? Thanks Video Details ------------- P1 - Accounting Standards - CA Inter (New) AS 19 #15. Accounting for Finance Lease in the Books of Lessor (Illustration 2)

Devaprasad Jothimani

CA Inter

★ 0

11-Apr-24 12:49

Answers (1)

For the lessor the net investment in lease captures all the present values of future benefits.

CA Suraj Lakhotia

Admin

15-Apr-24 19:15

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