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Deferred expense

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Dheeraj (Querist)
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27 June 2016 Hi, What should be the amortisation method of deferred rent arising consequent to fair value of refundable deposit given for an accommodation taken on rent ( whether SLM method over the tenor or any other method of matching concept ) As per IGAAP: Deposit of Rs 100 is appearing in the non current asset: As per IndAS fair value of the deposit is say, 80 and deferred rent of Rs. 20 shall be recognised in the books and amortised over the the tenor.
Thanks in anticipation of the experts' kind response

Amol S Joglekar

Amol S Joglekar (Expert)
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27 June 2016 Rent in common parlour is a monthly payment, which is more or less fixed on month on month basis, with a stipulation of increase in rent, if any, after a predetermined period, normally one year.
The same rule may be applied for amortisation of rent deposit

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