Dear Friends,
I badly need a help of you on following case;
- X ltd takes a lease of optical cable's right of usage for 15 years from Z ltd.
- The cable's remaining lifetime is equal to 15 years.
- X ltd will pay maintenance/insurance charge Rs 60 lac per year till end of 15 years.
- X ltd will pay Rs 23 crore as upfront.
What will be the accounting treatment of above case in both income statement and balance sheet.
Many thanks for your co operation.
Thanks
I badly need a help of you on following case;
- X ltd takes a lease of optical cable's right of usage for 15 years from Z ltd.
- The cable's remaining lifetime is equal to 15 years.
- X ltd will pay maintenance/insurance charge Rs 60 lac per year till end of 15 years.
- X ltd will pay Rs 23 crore as upfront.
What will be the accounting treatment of above case in both income statement and balance sheet.
Many thanks for your co operation.
Thanks
