GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Leases
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Borrowing Costs
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Segment Reporting
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Earning Per share
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Detailed explanation-1: -AS-19 deals with the accounting policies applicable for all types of leases except certain listed below. A lease is an arrangement between the lessor and the lessee that grants the lessee the right to use an asset in exchange for a payment or series of payments over a predetermined period of time.
Detailed explanation-2: -The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosures in relation to finance leases and operating leases. * The Standard was earlier notified as part of Companies (Accounting Standards) Rules, 2006, under Companies Act, 1956.
Detailed explanation-3: -The Institute of Chartered Accountants of India (ICAI) has issued accounting standard no. 19 (AS 19) on accounting for leases. ICAI apparently rode roughshod on the pleas of the leasing industry which vehemently tried to make a case for either deferring or substantially diluting the proposed accounting standard.