23 January 2011
Land is never a finance lease unless title passes to the lessee at the end of the lease term.
It still has to be considered as an operating lease. Cannot be capitalised in your books.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
23 January 2011
then Mr vivek what should be the treatment for a real estate company who took it on lease and going to construct residential flats on it for sale.
23 January 2011
In the Books of the LESSEES :Finance Leases are to be recognised as asset and liabilities at amounts equal to the fair value of the leased property
CAclubindia
