ABC Ltd had acquired land from Noida Authority on lease for 90 years (Total Consideration payable 6 CR. in 5 years quarterly installment).
ABC Ltd is a real estate company, company is developing project on said land.
please let me know accounting treatment for land acquired on lease. Should we account for it as 6CR and pass another entry as deffered liability?
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Accounting Treatment
Replies (4)
Accounting is required to be done as per AS 19
In which calculate fair value of asset (assumed it is financial lease)
land acquired on lease is stock for the company, whereas AS-19 is not applicable on stock in trade.
lease hold land is not covered under AS 19
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