Ind AS 116 and what is the difference between Ind AS 17.

Question

Accepted Answer

Ind AS 116 is a new lease accounting standard that replaces Ind AS 17.

Ind AS 116 requires lessees to recognize all leases on their balance sheet, whereas Ind AS 17 only required recognition of finance leases.
Ind AS 116 eliminates the classification of leases as operating or finance leases, instead requiring lessees to recognize a right-of-use asset and lease liability for all leases.
Ind AS 116 also changes the way lease expenses are recognized, with a front-loaded expense recognition pattern for most leases.
Ind AS 116 has a significant impact on financial statements, particularly for companies with large lease portfolios.
Ind AS 116 is effective for annual reporting periods beginning on or after April 1, 2019.

Accepted Answer

Ind AS 116 requires lessees to recognize all leasses on thier balance sheet whereas ind AS17only required recognitiin of financr leases

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