Q.1 > why is as 19 not applicable to natural resources, licencing agreements, lands & contracts of service?
Q.2 > mr a has taken on lease , a fully furnished ofice. the lessor provides secretarial services & all office equipments.is this covered by AS19?
Q.3 > why is the amount of guraanteed residual value is considered as "the maximum amount which could ,in any event becom pyaable". ?why not minimum?
Q 4> what do we men by"inception of the leaase" ?
Q.5> what do we mean by gross investment , net investment, & unearned finance income?
| Originally posted by : sukriti jain | ||
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Q 4> what do we men by"inception of the leaase" ? |
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'inception of lease' means: the begining stage of the lease.
| Originally posted by : sukriti jain | ||
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Q.5> what do we mean by gross investment , net investment, & unearned finance income? |
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Gross investment = minimum lease payments (from the point of view of lessor) + unguaranteed residual value .
Unearned finance income: = the gross investment in the lease; less P.V. of Gross Investment; at the interest rate implicit in the lease
Net investment = gross investment less unearned finance income.
[net investment is the present value of Gross Investment at the interest rate implicit in the lease]
sir, the same definition of gross & net inv,unnearned income is given in the book.i m unable to interpret the meanings of these terms......
inception of lease : date of lease agreement or date of commitment by parties to the principal provisions of the lease,whichever is earlier.
here what do we mean by "commitment by parties....." ?
CAclubindia
