Disclosure Requirements

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Varun.T.K

Varun.T.K (Querist)
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19 January 2010 A company leased a land for Rs.2.50 crores, whose lease period is 90 years. The payment was made by equity shares for 1 crore at the beginning, and balance 1.50 crores would be made by 10 annual payments of Rs.15 lacs. Apart from that the lease rent for each year is Rs.420/-

Whether it is covered by AS 19 or AS 10? If so,Kindly tell me what are the disclosure requirements in the Statements.

veena

veena (Expert)
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20 January 2010 If at the end of period the lease, if lessee is going to be the owner of the property then it would be finance lease. Considering the longer period of 90 years i think it would be finance lease