1 / 28

MEANING OF LEASE

MEANING OF LEASE. General Meaning. CONTRACT OF LEASE. Financial lease v. operating lease. A lease is said to be financial lease when substantial risks and rewards relating to the asset are transferred to the lessee. Accounting for financial lease as per AS 19.

jbullock
Download Presentation

MEANING OF LEASE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MEANING OF LEASE

  2. General Meaning CONTRACT OF LEASE

  3. Financial lease v. operating lease A lease is said to be financial lease when substantial risks and rewards relating to the asset are transferred to the lessee.

  4. Accounting for financial lease as per AS 19

  5. BALANCE SHEET (EXTRACT) [In the books of lessee] PROFIT AND LOSS ACOUNT (EXTRACT) [In the books of lessee]

  6. BALANCE SHEET (EXTRACT) [In the books of lessor] PROFIT AND LOSS ACOUNT (EXTRACT) [In the books of lessor]

  7. Accounting for operating lease as per AS 19

  8. PROFIT AND LOSS ACOUNT (EXTRACT) [In the books of lessee]

  9. BALANCE SHEET (EXTRACT) [In the books of lessor] PROFIT AND LOSS ACOUNT (EXTRACT) [In the books of lessor]

  10. For Companies other than NBFCs, Banks and Insurance Companies Phase III Applicability for Scheduled Commercial Banks (excluding RRBs) – 1st April 2018

  11. For NBFCs Applicability for Insurance Companies deferred till 2020-21

  12. Accounting for financial lease as per Ind AS 17

  13. Accounting for operating lease as per Ind AS 17

  14. Before we get into accounting under Ind AS 116 • Lessee has an option to not apply provisions relating to recognition and measurement as given in Ind AS 116 in case of: • short-term leases (period < 12 months) • Leases for which underlying asset is of very low value (USD 5000) • However all other requirements as provided in the standard shall be applicable. • Further, lessor does not have such option.

  15. Lessor Accounting as per Ind AS 116

  16. BALANCE SHEET (EXTRACT) [In the books of lessor] in case of Financial Lease PROFIT AND LOSS ACOUNT (EXTRACT) [In the books of lessor] in case of financial lease

  17. BALANCE SHEET (EXTRACT) [In the books of lessor] in case of operating lese PROFIT AND LOSS ACOUNT (EXTRACT) [In the books of lessor] in case of operating lease

  18. Lessee Accounting as per Ind AS 116

  19. BALANCE SHEET (EXTRACT) [In the books of lessee] PROFIT AND LOSS ACOUNT (EXTRACT) [In the books of lessee]

  20. Thank You -KanakprabhaJethani

More Related