Rented property issues

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A company has incurred significant contraction expenses on a rented property with a three-year lease and needs advice on the appropriate accounting method. The suggestion is to capitalise these expenses as a leasehold asset and depreciate them over the three-year lease period. Further clarification on the accounting framework (e.g., IGAAP or Ind AS) and the definition of 'contraction expense' would be beneficial for a more precise recommendation.

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(Querist)
02 June 2021 Hello, everyone..... Good Morning.......

My Company incurred a big amount of contraction expense on rented premises and lease period is 3 years.
now my ques is how can I book these expense ...........

kindly suggest an appropriate accounting method........

thanks in advance
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
02 June 2021 Capitalise the expenses as lease hold asset and depreciate it over a period of three years.
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CMA Poornima Madhava

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CMA Poornima Madhava (Expert)
02 June 2021 What is contraction expense?
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CA Ganesh Agarwala

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CA Ganesh Agarwala (Expert)
02 June 2021 The question is incomplete. Please tell the accounting framework applicable to the company igaap or ind as
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