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Lease Ind AS 116

Others 275 views 2 replies
We record lease liability by discounting all the future payments of lease rents .Is it measurement at Amortised Cost or Fair Value?
Replies (2)

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


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