banner_ad

Lease Land but without Consideration

This query is : Resolved 
Profile Image

Guest

Profile Image

Guest (Querist)
08 June 2010 What will be the treatment of the leased land if we got it without consideration.

An Goverment Authority gave land to use it for 5 years but did not take any consideration, only lease rent of Rs.3 lacs per annum is to be given.

Now my question how to treat this land in the balance sheet, since AS 19 does not apply on leased land and without consideration we can not show it in the balance sheet.
Profile Image

CA. Tarun Navlani

Profile Image

CA. Tarun Navlani (Expert)
10 June 2010 Hello Sanyam,

Though AS 19 does not cover lease of land, we can take guidance from relevant IFRS. Corresponding IAS requires that lease of land is always to be classified as operating lease unless the land has finite useful life.

Thus, you should recognise total lease rent payable during the lease tenure on straight line basis i.e. charge Rs. 3 lacs to P & L Account every year. No disclosure to be made in Balance sheet in case of operating lease.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details