- Where IND AS-116 is applied for 1st time if entity follows full retrospective method for eliminating the effects of IND AS-17 it passes the entry:
Lease liability a/c. Dr.
To lease Rent Exp a/c .
We are reducing lease liability but our bank balance is not reducing though we have to make payment for the lease rental? Why
Lease liability se bank account ka relation toh nahi hai . Next when we do retrospective method Lease Liability remeasure hota hai toh ROU hoga