Question
Please answer as per the managerial accounting and explain the answer as per IFRS PLEASE BE FAST .A Lessee goes into a non-cancellable rent contract
Please answer as per the managerial accounting and explain the answer as per IFRS PLEASE BE FAST
.A Lessee goes into a non-cancellable rent contract with a Lessor to rent a structure. At first, the rent is for a very long time, and the resident has the choice to broaden the rent by an additional five years at a similar rental.
To decide the rent term, the resident thinks about the accompanying elements:
Market rentals for a tantamount structure in a similar region are required to increment by 10% over the ten-year time frame covered by the rent. At origin of
the rent, rent rentals are as per current market rents.
Thelesseeintendstostayinbusinessinthesameareaforatleast20years.
The area of the structure is ideal for associations with providers and clients. WhatshouldbetheleasetermforleaseaccountingunderIFRS?
2.A Lessee goes into a rent of a five-year-old machine. The non-cancellable rent term is 15 years. The renter has the alternative to broaden the rent after the underlying 15-year time frame for discretionary times of a year each at market rents.
To decide the rent term, the resident thinks about the accompanying components:
The machine is to be utilized in assembling parts for a sort of plane that the tenant expects will stay well known with clients until advancement and testing of an improved model are finished in around 15years.
Thecosttoinstallthemachineinlessee'smanufacturingfacilityissignificant.
The non-cancellable term of tenant's assembling office rent closes in 19 years, and the tenant has a choice to restore that rent for an additional twelve years.
Lessee doesn't anticipate having the option to utilize the machine in its assembling interaction for different sorts of planes without critical adjustments.
Thetotalremaininglifeofthemachineis30years.
What ought to be the rent term for rent bookkeeping under IFRS ?
3.A Company leases amanu facturing office The rent installments rely upon the quantity of working hours of the assembling office, i.e., the resident needs to pay 2,000 every hour of utilization. The yearly least installment is $2,00,00,000. The normal utilization each year is 20,000hours.
Regardless of whether the said installments be remembered for the figuring of rent responsibility under IFRS ?
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