Capital expenditure on leased asset

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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.

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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?

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