alleryStart learning →ROU asset carries Rs 5,000. A reassessment cuts liability by Rs 8,000. P&L amount?
ARs 5,000 gain
BRs 8,000 gain
CRs 3,000 gain
DRs 13,000 gain
Answer & Solution
Correct answer: C. Rs 3,000 gain
The asset absorbs 5000 down to zero and the remaining 3000 reduction is recognised in profit or loss.
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Related questions
Ind AS 116 applies to annual reporting periods beginning on or after:At transition, a practical expedient lets an entity avoid reassessing:Modified retrospective adoption: the cumulative effect goes to:Asset worth Rs 5,00,000 sold for Rs 4,60,000 in leaseback at market rent. Rs 40,000 shortfSame sale-leaseback: total gain is Rs 2,00,000 and the retained right is 25% of fair valueSale-leaseback: carrying Rs 4,00,000; fair value Rs 6,00,000; PV of market lease payments A sale and leaseback transfer fails the sale test. The seller-lessee:In a sale and leaseback, whether the transfer is a sale is decided using: