Accounting treatment for leasehold land

PARULGOYAL (A) (24 Points)

02 October 2016  

Hi,

In my company we have acquire a land from government on a 30 years lease period. We had paid one time  charges like development charges, grid connectivity charges, charges for registration of leasedead etc and also advance lease rent for year 1. As a part of lease agreement we are furthur required to paid every year annual lease payment which is also subject to some escallation and also we have to pay some contingent payments.

Please help me with accounting treatment as per relevant accounting standards..

Thank you all..

Parul Goyal