Professional Documents
Culture Documents
A. B. C. D. E. F. G. H. I. J.: For Lessor
A. B. C. D. E. F. G. H. I. J.: For Lessor
1.The main purposes of the disclosure in the notes section is that the user of the financial information
can have a clear and concise knowledge about the financial position and financial performance of the
company. they can have this knowledge seeing the statement of profit and loss, balance sheet, and cash
flow.
2.lessee have to disclose information about lease in notes section of financial statements. If the
information is presented anywhere in the financial statement, then there is no need to present them
again.
d. expense of low value asset and short term lease shall not be included.
e. any cost or variable lease expense shall not be included.
f. a lessee shall disclose any income arising from sublease.
g. a lessee shall disclose the amount of total cash outflow due to lease.
h. if there is any addition in the right to use asset, then that should be disclosed
i. lessee shall disclose any gain or loss arising from sale of leased assets or leaseback.
j. lessee shall disclose the present value of asset at the end of each lease year. And the assets should be
shown categorically.
4.in paragraph 53,there is a specified format to disclosure. If there is any format available to the lessee
then he can use it .
5.lessee have to disclose any short term lease according to the instructions given in the paragraph 6.
6.the disclosures that are required for IAS 40 shall be used in case of right to use any asset the fulfills the
requirements to be an investment property.
7.if the amount of right to use assets are revalued then it should be disclosed as per requirements of
IAS-16
For lessor
1.The main purposes of the disclosure in the notes section is that the user of the financial information
can have a clear and concise knowledge about the financial position and financial performance of the
company. they can have this knowledge seeing the statement of profit and loss, balance sheet, and cash
flow.