Presentation of “Lease Receivables” in the Financial Statements
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 11 October, 2023
Latest from Taxmann
Ind AS 116,’ Leases’ specifies that, upon commencement, a lessor should recognize assets held under a finance lease on its balance sheet and present them as a ‘Receivables’ at an amount equal to the net investment in the lease. However, it does not offer explicit guidance on how to recognize ‘lease receivables’ in financial statements. Nevertheless, the guidance note pertaining to Schedule III for companies adhering to Ind AS categorizes leasing under ‘Loans’ within the ‘Financial Assets’ section.
This raises a pertinent question: Should ‘Lease Receivables’ be also included as part of ‘Loans’ on the Company’s Balance Sheet? Additionally, whether presenting lease receivables within ‘Loans’ rather than ‘Receivables’ may raise doubt on the Company’s core business nature i.e. leading stakeholders to initially perceive it as a lending institution?
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.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
