As 19

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I am taking a asset on lease.  AS 19 says all the assets and liabilities should be valued at fair market value.
Liablity is for Rs 20 lakh and fair market value of asset is 50 lakh. Where should i account balance 30 lakh ? Will that be passed to reserves?
Please advice

its a financial lease

Replies (1)
Which Liability are u talking about ? There is no such concept of Liability in AS-19 I think. It's just when PV of Lease Rentals is Equivalent to FMV of Asset, it's considered as Financial Lease.


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