banner_ad

Capital expenditure on leased asset

1041 views 2 replies

What should be the accounting treatment for capital expenditure incurred on a leased asset by lessee. No reimbursement of exp. is done by lessor. Please cite the applicable para of AS also.

Replies (2)

Assets under finance lease (in the books of lesee) should be classified separately under the respective asset class.  Refer AS 19 - Para 11 to 25.

Leasehold improvements should be shown as a separate line item as a separate asset class. (Refer Revised Schedule VI).  Leasehold improvements will come under the purview of AS - 10 and AS - 6.

 

For Income tax purposes, leasehold improvements will be treated as revenue and not capital expenditure.

 

Thank u mam. My Question is related to "leasehold improvements" in nature of capital exp. only. Can u cite para no. of AS-10, which says leasehold improvement should be recognised as asset?


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details