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AS 17 - Lease


As per AS 17 it is given that if payments to lessor are structured to increase in line with inflation, then not to straight line lease rental over the lease term . My question is whether only escalation part not to be straight line or whole of lease rentals? and if not to be straightlined then what method to be consider to charge lease rental to P/L in such case.  
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Hi Sushil If lease rentals are structured in line with inflation then no need to follow straight line method. Full lease rentals including escalation will not be straight lined. Normal acconting system by debiting expense with the yearly payments will be shown in profit and loss account. Since, inflation is contigent, if there is any percetage fixed for escalation then it has be according to straight line method.   Thanks Nisha  
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