Lease Accounting Software – Deposit Management

1. Discount factor is based on the rate given in the Advances file by adding the two fields –

2. For the first line, where the advance amount is given the discount factor is found by the number of days from the start date to the end date in the formula:

3. For the subsequent lines, the number of days is the current date less the start date.

5. Imputed interest is the current carrying value less previous carrying value. 6. Amortization is the Right to Use Deposit divided by the total number of days multiplied by the number of days between the current date less previous date.

Statement on Auditing Standards-SA 265

May 17, 2023

The scope and objective of the auditing standards related to the auditor’s responsibility to communicate deficiencies in internal control to those charged with governance and management. The SA 265 applies when the auditor identifies deficiencies in internal control during the audit of financial statements. The auditor is required to obtain…

What is the difference between operating lease and finance lease?

March 8, 2023

An operating lease is a short-term lease in which the lessor (the owner of the asset) rents the asset to the lessee (the user of the asset) for a specific period of time, usually less than the useful life of the asset. At the end of the lease term, the…

Ind AS Accounting Standards

June 29, 2022

Ind AS (Indian Accounting Standards) are a set of accounting standards developed by the Institute of Chartered Accountants of India (ICAI) and adopted by companies in India for preparing their financial statements. These standards are based on the principles of International Financial Reporting Standards (IFRS) and are intended to improve…

Lease accounting, lease period extended after year 1 – Journal entries

January 10, 2022

Lease accounting, lease period extended after year 1 – Journal entries Details for lease accounting for lease extension Let us assume the following details for lease accounting: Lease start date: 1-Apr-2019 Lease end date: 31-Mar-2024 Lease payments: Rs. 2,75,000 Payment frequency: Annual – payable at the end Incremental borrowing rate:…

Lease accounting, interest-free deposit lease period extended after year 1

January 9, 2022

Lease accounting, interest-free deposit lease period extended after year 1 Details for lease accounting for lease extension When the lease is modified without any increase in the scope of the lease then lease liability and the right-of-use are recomputed on the effective date of such modification. This would result in…

Lease accounting Journal Entries for Modification

August 12, 2021

Lease accounting Journal entries for Modification Details for lease accounting with modification When the lease is modified without any increase in the scope of the lease then lease liability and the right-of-use are recomputed on the effective date of such modification. This would result in amortising an additional amount and…