Lease Ind AS 116

We record lease liability by discounting all the future payments of lease rents .Is it measurement at Amortised Cost or Fair Value?
Replies (2)
Quick Summary
This discussion clarifies the accounting treatment for lease liabilities under Ind AS 116. While future lease payments are discounted to determine the lease liability and right-to-use asset, the appropriate measurement basis is not strictly 'amortised cost'. Instead, the standard refers to a 'lease schedule' approach. Modifications to lease terms, such as changes in rent payments, are measured at fair value.

Yes. Liability= present value of lease payments+advance payment+direct costs- tax incentives= Right to use asset. Amortised cost method is used. Any modifications are measured at fairvalue eg if lease payments are decreased or increased by lessor. 

Forgot to mention.  Leases have a standard and amortised cost is not the right terminology.  The nomenclature used here is lease schedule

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details