hello sir, i"m studying Chartered Accountancy (India) i came across to understand this topic which you are discussing. i was very confused how things done in this topic and most importantly why this accounting is done. but now i am pretty clear about this concept. Respect for you. we got IndAs 116 Leases.
It gives you the proportion of your ownership (PV of lease payments) against the total value of asset (FV) Say your payments PV is 70, the asset FV is 100, so your ownership of asset is 70/100 which is 70%
hello sir, i"m studying Chartered Accountancy (India) i came across to understand this topic which you are discussing. i was very confused how things done in this topic and most importantly why this accounting is done. but now i am pretty clear about this concept. Respect for you. we got IndAs 116 Leases.
Glad that it helped you.
Very well explained thank you so much for explaining with great clarity of concepts
Glad it was helpful!
made easy
Wonderful lecture. Could you explain why we use PV of future lease payments discounted divided by FV as a way to calculate the rights retained>
It gives you the proportion of your ownership (PV of lease payments) against the total value of asset (FV)
Say your payments PV is 70, the asset FV is 100, so your ownership of asset is 70/100 which is 70%