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What is the impact of Rent free period on ROU and lease liability? Will interest liab be accrued during RFP, although lease payment starts after RFP? Please throw light on this. Term 24 months including 6 months RFP, monthly payments 10000,Interst 12℅pa, we have to calculate pv of annuity for 24 months, am I right? Interest liability will start from first month itself, but payment from 7th month.. Please correct me if I wrong.
Answers (6)
Thank you so much Sir.. I had asked this question to Chat GPT AI, got reply to do RFP adjustment= monthly payment*pv factor for 6 months, and then subtract.,totally wrong.Screenshot attached, figures are changed, monthly payment 100000,interest 8℅pa
CA Suraj Lakhotia Admin
Cant really rely on Chat GPT. Once I had asked to calculate monthly EMI. It was giving yearly.
Sir i use CA GPT, still receiving inaccurate results. I have an another question, in lease payment we are considering purchase price option if lessee reasonable certain, along with residual value guarantee payable by lessee, why to include both? . If lessee is certain to buy the asset, then what's the point to include residual value gurantee.Might be this the reason-- If RVG is more than Expected purchase price, then we have to consider both(Purchase price and additional amount through residual value) , but if RVG <Purchase price, then Purchase price should be considered.. Am I right?
Thread Starter
Mansha TutlaniSir i use CA GPT, still receiving inaccurate results. I have an another question, in lease payment we are considering purchase price option if lessee reasonable certain, along with residual value guarantee payable by lessee, why to include both? . If lessee is certain to buy the asset, then what's the point to include residual value gurantee.Might be this the reason-- If RVG is more than Expected purchase price, then we have to consider both(Purchase price and additional amount through residual value) , but if RVG <Purchase price, then Purchase price should be considered.. Am I right?
Generally you would not see both scenarios on a single asset. Sometimes it may be possible that lessee may exercise purchase option on part of asset and residual value guarantee on balance part.
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