CA Sukriti Jain (Senior, EY) (1179 Points)
10 March 2011Q.1 > why is as 19 not applicable to natural resources, licencing agreements, lands & contracts of service?
Q.2 > mr a has taken on lease , a fully furnished ofice. the lessor provides secretarial services & all office equipments.is this covered by AS19?
Q.3 > why is the amount of guraanteed residual value is considered as "the maximum amount which could ,in any event becom pyaable". ?why not minimum?
CA Sukriti Jain
(Senior, EY)
(1179 Points)
Replied 10 March 2011
Q 4> what do we men by"inception of the leaase" ?
CA Sukriti Jain
(Senior, EY)
(1179 Points)
Replied 10 March 2011
Q.5> what do we mean by gross investment , net investment, & unearned finance income?
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 10 March 2011
| Originally posted by : sukriti jain | ||
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Q 4> what do we men by"inception of the leaase" ? |
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'inception of lease' means: the begining stage of the lease.
CA Anshu Agarwal
(B€ @LW@¥$ ]-[@Pp¥)
(1832 Points)
Replied 10 March 2011
| Originally posted by : sukriti jain | ||
|
|
Q.5> what do we mean by gross investment , net investment, & unearned finance income? |
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Gross investment = minimum lease payments (from the point of view of lessor) + unguaranteed residual value .
Unearned finance income: = the gross investment in the lease; less P.V. of Gross Investment; at the interest rate implicit in the lease
Net investment = gross investment less unearned finance income.
[net investment is the present value of Gross Investment at the interest rate implicit in the lease]
CA Sukriti Jain
(Senior, EY)
(1179 Points)
Replied 10 March 2011
sir, the same definition of gross & net inv,unnearned income is given in the book.i m unable to interpret the meanings of these terms......
CA Sukriti Jain
(Senior, EY)
(1179 Points)
Replied 10 March 2011
inception of lease : date of lease agreement or date of commitment by parties to the principal provisions of the lease,whichever is earlier.
here what do we mean by "commitment by parties....." ?
CAclubindia
