yogen (Accountant) (105 Points)
25 February 2013Respected sir ,
we have taken a building in a lease of 3 years and monthly rent of the building is rs 50000 is paying every months.
Total value of the building is not mentioned in a lease agreement . we are confuse abount where to this lease should be added in a balance sheet in assets side or not?
The building is using for university Purpose and hostel for students.
Hoping your valueable reply.
we heartly thanks to you and your teams.
Sriharsha K R
(Article)
(50 Points)
Replied 26 February 2013
See normally in the ordinary practice is that the lease agreements generally do not have the details of the Value of the building, for our purpose wht I have generally observed is that on our general calulations and estimations if the lease amounts almost is covering the builodings cost and the the tenure of the Agreement is likely to be renewed for the next possible years too ... we are considering at as a Finance Lease and Showing in the Clients Books as Assets !
"Live Course on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
