IND AS 116 Leases
SATISH (8 Points)
12 July 2021SATISH (8 Points)
12 July 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 12 July 2021
Period of use= aggregate of consecutive days. This way, you will need to charge depreciation expense not for the period of use and don’t depreciate the asset when idle.
So no. of days RTU Asset used=Two fifty days or 8 months
monthly crushing capacity= Hundred
Per tonne crushed cost= Hundred
so total contract price = Eighty thousand
depreciation must be SLM.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 12 July 2021
Forgot to mention, if the lease is for ten years, contract price= 80,000*10* PV minimum lease payments
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 12 July 2021
I mean discount factor for PV of minimum lease payments
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 12 July 2021
Sry been busy, now to find the implicit rate
Market borrowing rate= 10% use this as the discount factor and discount it with annual cash outflows n 80,000₹. Then add all the PV and it becomes your asset value. This is rough work and hope you got it
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