Rent Equalization reserve

This query is : Resolved

Share Report Follow Query Ask a Query

CA. Pramod Kumar

CA. Pramod Kumar (Querist)
Follow

18 June 2010 Plz tell me under which rule/GN/standard/compliance rent equalisation reserve is neccesary to create.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

18 June 2010 Where have u read it?

CA. Pramod Kumar

CA. Pramod Kumar (Querist)
Follow

18 June 2010 i have seen this reserve in a balance sheet and it is used to calculate deffered tax also

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

18 June 2010 I think this is as per AS - 19 para 40

Lease income from operating leases should be recognized in the statement of profit and loss on a straight line basis over the lease term, unless another systematic basis is more representative of the time pattern in which benefit derived from the use of the leased asset is diminished.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

18 June 2010 For eg:

If lease period is for 3 years and rent as per agreement is Rs. 20,000 per month for 1 st year, Rs. 25,000 per month for 2nd year and Rs. 30,000 per month for 3rd year then rent expenses should be booked Rs. 25,000 per month for all the three years.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SARAVANAN PALANISAMY

GST Karimnagar state

Darshan

Krishnamohan Gangaraju

CA Bijo scaria

Subscribe Now

Rent Equalization reserve

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA