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

Sundaram Leasing Ltd., a lessor, has leased out equipment under operating leases. For assets subject to these operating leases, which Indian Accounting Standards' disclosure requirements must the lessor apply?

A lessor applies the disclosure requirements of Ind AS 36, Ind AS 38, Ind AS 40 and Ind AS 41 for assets subject to operating leases. These cover impairment, intangibles, investment property and agriculture respectively, as stated in Ind AS 116.

  1. AInd AS 2, Ind AS 10, Ind AS 16 and Ind AS 37
  2. BInd AS 19, Ind AS 20, Ind AS 24 and Ind AS 33
  3. CInd AS 36, Ind AS 38, Ind AS 40 and Ind AS 41Correct
  4. DInd AS 7, Ind AS 8, Ind AS 12 and Ind AS 21

Explanation

Ind AS 116 states that a lessor shall apply the disclosure requirements of Ind AS 36, Ind AS 38, Ind AS 40 and Ind AS 41 for assets subject to operating leases. The other sets of standards are not those cross-referenced for this purpose.

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