31 August 2010
Dear Experts, If any Pvt Ltd Co takes an building on perpetual lease, then 1) how to calculate deprecitaion on the same? 2) How to disclose the same in balance sheet? 3) How to disclose the same in the auditors report?
An early reply to the above query is highly appreciable.
02 September 2010
1) Since perpetual, no depreciation necessary. 2) This will be classified under Land & Building. Nature of the asset can be disclosed with a note that the lease is perpetual. 3) Auditors need not disclose anything with respect to this.
CAclubindia
