Whether ROU Assets and Lease Liability as required under Ind AS 116 needs to be created for cancellable leases.
Whether treatment is same for Cancellable lease and non cancellable lease ??
Vaibhav Kumar Agrawal (Service) (168 Points)
14 June 2019Whether ROU Assets and Lease Liability as required under Ind AS 116 needs to be created for cancellable leases.
Whether treatment is same for Cancellable lease and non cancellable lease ??
Sandeep Garg
(Consolidation and IndAS Application)
(1056 Points)
Replied 04 September 2019
You need to check the practical position of cancellable clause i.e. whether it is economically viable or not / whether practically possible or not. Then we need to create ROU / liability.