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As 19

AS 343 views 1 replies

Prateek Hinger

28 Points Joined March 2008

I am taking a asset on lease. AS 19 says all the assets and liabilities should be valued at fair market value.
Liablity is for Rs 20 lakh and fair market value of asset is 50 lakh. Where should i account balance 30 lakh ? Will that be passed to reserves?
Please advice

its a financial lease

Replies (1)

SHINY

CA Final Student

699 Points Joined February 2012

Which Liability are u talking about ? There is no such concept of Liability in AS-19 I think. It's just when PV of Lease Rentals is Equivalent to FMV of Asset, it's considered as Financial Lease.