Classification of Wind Power Plant Under Ind AS | Finance Lease or Property, Plant, and Equipment
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 5 November, 2024
Latest from Taxmann
This document explores the classification of a wind power plant owned by a Central Public Sector Entity (CPSE) under Indian Accounting Standards (Ind AS), specifically focusing on the distinction between finance leases and property, plant, and equipment (PPE). It delves into the complexities surrounding the classification of the wind plant, which operates under a Power Purchase Agreement (PPA) with Indian Railways, and highlights the implications of Ind AS 116 regarding lease accounting. By examining the relevant provisions and the circumstances surrounding the plant’s operation, this document aims to provide clarity on the correct accounting treatment in accordance with the standards.
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
