a land taken on lease for a period of 10yrs can we do construction on it and debit the exp in our profit /loss account . If yes then what kind of lease it shld be finance lease or operating lease
3 Replies
satish
(teaching)
(2046 Points)
Replied 21 June 2019
my dear,
any land is taken for usage on lease is not covered under AS 19 leases.
so no question of finance lease or operating lease.
any land is taken for usage on lease is not covered under AS 19 leases.
so no question of finance lease or operating lease.
pavel
(student)
(461 Points)
Replied 21 June 2019
Satish Sir...then the exp that are occurred in constructing the school where it shld be shown ..can we debit in I/E a/c
Mehta Jay
(6 Points)
Replied 25 June 2019
yes ofcourse you can capitalize it because you will be using for a period but not recorded expense in one year but to create deferred expense a/c and to amortize it over a period of time
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