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Accounting of Lease hold land

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(Querist)
31 December 2008 Fact of the case

Lease Priod 30 Years
T&C Renewual of lease at expiration for furter five year at the descrition of lessor.

Q: Please clerify me whether the capitalization of lease Premium paid at initial stage will amortize during 30 year?

and

what accounting treatment will be done for

-Annual Lease rent
-Annual Maintenance Charges

Whether ICAI has issued any clerification or guidance for accounting of leasehold land?
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CA Tilak Raj Sharma

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CA Tilak Raj Sharma (Expert)
01 January 2009 1. Yes, you can amortise the Initial stage over the lease period.
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CA Tilak Raj Sharma

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CA Tilak Raj Sharma (Expert)
01 January 2009 Post the Annual charges to P&L account.
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