shakeel (GFM) 17 February 2021
A key money has been paid to the lessor to acquire interest in his running business. How it should be treated in accounts as per IFRS 16 or any other standard?
yasaswi gomes (My grammar is 💯 good I) 17 February 2021
Key money is rentals? Acquiring interest in lessor business is consolidation standard and to understand the nature of acquisition it is business combinations standard.
shakeel (GFM) 17 February 2021
Lessor is already running business on the premises where he is willing to share half portion with lessee on condition of regular sharing of rentals and a non refundable key money payable in the begining.
yasaswi gomes (My grammar is 💯 good I) 17 February 2021
Sry about that, yes only IFRS 16, IAS 40 & IAS 16 (as long as it is held as PPE) Standards are applicable to lessor.
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