I wanted to ask why is Hotel Charges not considered as a Lease contract as there is an underlying asset and there is right to direct the use been transferred and also all the economic benefits attached to the asset (hotel room) are getting transferred. Please help me with the reason why will it not be considered as a lease agreement!
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Replies (5)
since hotel industry is providing group of service along with the room such as attendant, cleaning services, tele communication ser, food etc. So it is considered as service revenue
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It's an operating Lease like a cab
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