Lease accounting with an interest-free deposit
Details for lease accounting
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
Lease Deposit: Rs. 3,00,000
Payment frequency: Annual – payable at the end
Incremental borrowing rate: 9%