Whether the cost of the leasehold land which has been capitalised can be amortised over the period of lease?
Menu
Leasehold Land
Replies (5)
Yes, it can be amortised over the lease period.
| Originally posted by :Triparna Banerjee | ||
| Whether the cost of the leasehold land which has been capitalised can be amortised over the period of lease? | " | |
Thanks for the reply. Could u please expalin it to me. As per my understanding, since it is not a depreciable asset, if the cost is amortised it means we are providing depreciation.
Thanks for the reply. Could u please expalin it to me. As per my understanding, since it is not a depreciable asset, if the cost is amortised it means we are providing depreciation.
| Originally posted by :Triparna Banerjee | ||
| " | Originally posted by :Triparna Banerjee Whether the cost of the leasehold land which has been capitalised can be amortised over the period of lease? " Thanks for the reply. Could u please expalin it to me. As per my understanding, since it is not a depreciable asset, if the cost is amortised it means we are providing depreciation. |
" |
DEAR TRIPARNA AS PER AS-19 "LEASE ACCOUNTING' THERE ARE TWO TYPE OF LEASE 1. OPREATING LEASE 2. FINANCIAL LEASE IN THE CASE OF A FINANCIAL LEASE DEPRECIATION SHOULD BE TAKEN BY THE LEASEE IN HIS BOOKS. HE SHOULD AMORTISE THAT CAPITALISED LEASEHOLD LAND AS PER THE PROVISION OF AS -19 . FOR BETTER UNDERSTANDING YOU SHOULD GO THROUGH AS-19
But AS-19 on Leases is not applicable for Land right? The very first paragraph on scope of the standard says that:
Scope (para 1(c))
1. This statement should be applied in accounting for all leases other than:
a) lease agreements to explore for or use natural resources, such as oil, gas, timber, metals and other mineral rights; and
b) licensing agreements for items such as motion picture films, video recordings, plays, manuscriptts, patents and copyrights; and
c) lease agreements to use lands.
Recent Topics :
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
Related Topics :
CAclubindia
