Skip to content

CMA Final · Corporate Financial Reporting · Leases (Ind AS 116)

A lessor, Narmada Equipments Ltd, leases machinery under operating leases. Which disclosure requirements does Ind AS 116 direct it to apply to the assets subject to those operating leases?

Under paragraph 96 of Ind AS 116, a lessor applies the disclosure requirements of Ind AS 36, Ind AS 38, Ind AS 40 and Ind AS 41 to assets subject to operating leases. No other standards are named there.

  1. AOnly those of Ind AS 109 and Ind AS 107
  2. BThose of Ind AS 36, Ind AS 38, Ind AS 40 and Ind AS 41Correct
  3. COnly those of Ind AS 16 and Ind AS 2
  4. DThose of Ind AS 7 and Ind AS 8 only

Explanation

Paragraph 96 states that a lessor shall apply the disclosure requirements in Ind AS 36, Ind AS 38, Ind AS 40 and Ind AS 41 for assets subject to operating leases. The listed standards cover impairment, intangibles, investment property and agriculture. The other options name standards that paragraph 96 does not list.

Did you get it right without looking?

One question tells you little. A timed set on Leases (Ind AS 116) shows your real accuracy, how long you take and where you lose marks.

Practise Leases (Ind AS 116)Free diagnostic mock

More Leases (Ind AS 116) questions