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Insights into Ind AS 116: A series

The Ministry of Corporate Affairs has notified Ind AS 116 with effect from 1 April 2019. Ind AS 116 is based on International Financial Reporting Standard 16, Leases (‘IFRS 16’), which became effective starting 1 January 2019.

Ind AS 116 will affect most companies that are involved in leasing, and will have a substantial impact on the financial statements of lessees of property and high-value equipment.

This article on ‘Definition of a lease’ is the first in a series of articles on this topic. The publication delves into the three key evaluations, all of which must be met in order to conclude that a contract is or contains a lease and the transition considerations.