Reporting of lease Land as per AS

How to report lease land in balance sheet as per accounting standards applicable to small company?
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Quick Summary
For small companies in India, lease land is reported as a Fixed Asset on the balance sheet according to applicable accounting standards. Its cost includes initial payments, associated fees, and improvements. Lease land is depreciated over its useful life, typically the lease term or remaining term, whichever is shorter.

As per the accounting standards applicable to small companies in India, lease land should be reported in the balance sheet under the category of Fixed Assets. 

  1. Determine the cost of the lease land: The cost of the lease land should include the initial lease payment, any legal or other fees associated with acquiring the lease, and any improvements made to the land.

  2. Depreciation: Lease land is considered as a fixed asset and should be depreciated over its useful life. The useful life of lease land is usually the term of the lease or the remaining lease term, whichever is shorter.

Thank you.

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