Question

A company takes office space on a 5-year lease. As per

Ind AS 116 requires lessee to recognize a Right-of-use ROU asset and a lease liability for all long-term leases.

Ind AS 116, what should be recognized in books at commencement?

A Lease rental as expense

B Lease asset and lease liability

C Advance rent only

D Lease commitment note in footnotes

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