IND AS 116 Revision | CA Final FR | Leases | By CA Ajay Agarwal AIR 1

Topics Coverage:
Ind AS 116 - Leases

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[ritikchindaliya]

Used to watch this lectures as Student, now watching as qualified Chartered Accountant for Interview preparation❤

[ishaathakur]

I just want to say one thing, you have created a 'legacy' in the field of CA teaching which will be remembered for years to come.🔥 I don't know how to thank you enough for your tremendous contributions towards helping the students in every way possible. These are golds and diamonds for us. May god bless you and give you every happiness and prosperity in your life.

Just keep up this good work sir.. We are blessed to have teachers like you:) 🙏❤️

[tanishka.akhand]

So many hours of classes wasted to study a chapter which you have explained so "easily" ! Thank You !

[istiyakkhan]

3:45 Lessee Accounting
10:09 Lease payment meaning
30:27 Lessee Journal Entry
35:19 Lease Modification
43:00 Lease Modification Steps
59:17 Remeasurement Accounting
1:05:00 Lessor books
1:19:23 Dealer lessor
1:23:20 Lessor Modification
1:27:27 Sale and leaseback

[MaheshEmpire]

Ajay sir n Atul sir are real Kohinoor Hiras of CA coaching fraternity. They have contributed alot to the passing of thousands of CA students n filling their dreams.
Thanks aton to you both legends 🙏🙏

[Mystic_force]

1:49 - date of lease
3:46 - Lessee accounting
30:29 -Journal entry
37:00- Increase in area& increase in lease payment with stabdard selling price of such increased area
37:49 -Increase in lease term or, imcreade in area and lease payment, or increse/decrease in lease payment
59:04 - Accounting of remeasurement
1:19:21- Dealer lessor finance lease
1:39:45 -Sub lease

[madhumitha_Raja]

The clarity i got in this 1.5 hours is more than listening the regular class of Ind As 116 for 10 hours

[shivamkansal]

I have to admit that i have studied this particular Ind AS for around 5 times until now...but never have I ever had this conceptual clarity of this Ind AS. Thank you so much for your efforts.

[poojavaishnav]

I don't know about others but
I personally feel that
Because of atul sir and ajay sir's technique of teaching like free notes you tube, reasonable price of lectures etc. They are just trying to reach many to many students by their commendable efforts
Now many of other are trying the same techniques
But sir really thankful to your team sir
From my personal point of view you guys only first who take such a big initiative for us
This really helpful for those who even can't afford classes
Thank you so much sir
Keep growing👏👏👍

[dimplejain]

35:17 lease modification
59:05 remeasurement accounting
1:05:06 accounting in lessor books

[sknbbx]

49:12 Step 5 of Case B modification
52:35 Case B, Part where decrease in LEASE TERM - Lease Liability part

[raghavsharma]

Just imagining the mind of person who has written & thinked of this making IND AS. If he/she would be doing accounts work...there is no need to AUDIT 🤐🤣🤣

[d.v]

Modification in books of LESSEE
〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️〰️

1️⃣ increase in area & payment
⬇️
New contract

2️⃣ Increase in term / area & payment / increase or decrease in payment
⬇️
CASE ➖A

3️⃣ Decrease in term / area & payment
⬇️
CASE ➖B

4️⃣ Mix of case A & B
⬇️
CASE ➖ C

CASE ➖A
Steps to follow to solve question

Step 1 calculate LL to be book initially

Step 2 cost of ROU On commencement date

Step 3 Cl bal of ROU on modification date (using depreciation table)

Step 4 calculate CL bal of LL on MD (using amortization table)

Step 5 Calculate revised LL on MD using discount rate of MD ☠️.

Step 6 difference between step 5 & 4 will be adjusted in LL & ROU ASSET.


Case b
〰️〰️〰️
step 1 to 4 same

Step 5 gain or loss due to decrease in term or area 50:00

Calculation of gain/ loss if decrease in area -

1️⃣ Reduction in ROU asset balance

Cl bal of ROU Asset on MD
❌
Decrease in area
➖➖➖➖➖➖
Original area

2️⃣ Reduction in LL balance

CL balance of LL MD
❌
DECREASE IN AREA
➖➖➖➖➖➖➖➖
ORIGINAL AREA

GAIN/ LOSS DUE TO DECREASE IN AREA 🟰 (1️⃣➖2️⃣)

🐄🐄🐄🐄🐄🐄🐄🐄🐄🐄

Calculation of gain/ loss if decrease in term -

1️⃣ Reduction in ROU asset balance

Cl bal of ROU Asset on MD(bal year right value)
❌
Decrease in term
➖➖➖➖➖➖
Original term

2️⃣ Reduction in LL balance


GAIN/ LOSS DUE TO DECREASE IN AREA or lease term 🟰 (1️⃣➖2️⃣)

Then pass J E

Step 6 calculate CL BAL of ROU ASSET ON MD ➡️ step 3 - step 5

Step 7 calculate CL BAL of LL ON MD ➡️ step 4 - step 5


STEP 9 (step 8 - step 7) 🟰 amount to be adjusted in LL AC & ROU Asset AC.

[Abcdefghhijklm]

Still I am watching his class even after becoming CA for Interview preparation.Very nice explanation.

[peachcookie]

41:07 decrease in lease term - like selling an asset (rou in this case), gain / loss on sale will arise, case B modifcn = case A modifcn + gain / loss adjustment

43:11 - case A modifcn - 6 steps (first 4 same as for accting for lessee)

53:00 decrease in lease term, calc of closing balance of lease term

1:21:48 lessor accounting, loss/profit in lease is accounted as gross profit when lessor is in business of leasing (dealer lessor)

1:22:51

For the lessee the lease liability is the lease payment that includes the guaranteed residual value. For the lessor, his lease receivable is the lease payment (which inclues grv) from the lessee AND the unguaranteed residual value

This is GROSS INVESTMENT IN LEASE (GIIL) of the lessor

PV of GIIL = PV of lease payment + PV of UGRV = NIIL

[aditiagarwal]

It's been so easy to revise FR because of your revision videos. Can't thank you enough 😍

[SumitJainYog]

never understood this AS 19 in old AS but this time IND AS 116 Leases is so simple to understand. all credit goes to Ajay Agrawal ji for providing Conceptual clarity.. Thank you So much 👌✌️

[bharatgudla]

@ 1:18:42 its not Loss in Lease.. that should be Profit in Lease

[seemabidnur]

1:05:07 Accounting of lease in the books of Lessor

[darshandama]

I want to share this with everyone

My exams are there in nov 24
mere second revision k waqt me sab FR k concepts bhul gaya tha uske wajah se mai kaafi demotivate hogya aur itna stress le liya ki mere baaki subjects k preparation pe bhi affect hora tha aur maine FR ki preparation hi bandh krdi mujhe jo chize aati thi vo bhi bhul chuka tha me

pichle 5 din se maine Sir k revision videos lecs dekhe aur mujhe kaafi confident feel hone laga aur concepts ki ekdm deep understanding and problem solving ki techniques bhi mile

Mujhe hamesha regret rehga ki maine AIR1CA se lecs kyu nahi liye

IND AS 116 ko sir ne sirf 2 steps me nipta diya ye magic sirf Aap dono bhai hi krskte ho Sir

Thankyou so much for these revision lectures Sir