Accounting standards
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 January 2011
Hi Experts,
X ltd comapny brought an asset on lease basis for 10 years(subtantial period) and hence given treatment according to AS-19 as finance lease.However after the end of 1st year X ltd thought that asset is useful for one more year then in such case what should be the treatment in the 2nd year?what abt the treatment given in 1st year
pls guide me
X ltd comapny brought an asset on lease basis for 10 years(subtantial period) and hence given treatment according to AS-19 as finance lease.However after the end of 1st year X ltd thought that asset is useful for one more year then in such case what should be the treatment in the 2nd year?what abt the treatment given in 1st year
pls guide me
Vivek Raju P
(Expert)
11 January 2011
even in that case i think the lease will not be cancellable and lease rentals needs to be paid for the total 10 years.
However as the asset will not be useful beyond one more year, impairment loss needs to be taken.
However as the asset will not be useful beyond one more year, impairment loss needs to be taken.
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