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leasing

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Student
135 Points Posted on 25 February 2017
Are we supposed to take the cost of capital or the after tax interst rates for discounting if both the details are given in a question? PM solves in both the ways. kindly help
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On 25 February 2017 at 12:42 Report
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student
5205 Points Posted on 25 February 2017

Method which is comfortable to you go for it

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On 25 February 2017 at 14:41
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Student
135 Points Posted on 25 February 2017
okey. thank you
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On 25 February 2017 at 16:36
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CA
341 Points Posted on 25 February 2017

Incase cost of capital of the leasing company is available at the inception of lease then we must take Cost of capital, else we will use incremental borrowing rate.

 

Please refer AS-19 Leases para 3.17 and 3.18

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On 25 February 2017 at 22:36
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CA student
394 Points Posted on 25 February 2017
Cost of capital should be considered rather post tax interest rates..
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On 25 February 2017 at 22:39


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