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In the question itself mentioned that “The annual lease payment will increase based on the annual increase in the CPI at the end of the preceding year. For example, the payment due on 01/01/20X2 will be based on the CPI available at 31/12/20X1.”. Then why revised CPI is considered for payment due on 01/01/20X4. Revised CPI is given for 01/01/20X4 but as per the e.g. given in the question itself payment due on 01/01/20X4 CPI should be of 31/12/20X3 which is old one. Video Details ------------- Ind AS - CA Final Ind AS 116 Leases #40. Illustration 33 - Remeasurement
Answers (3)
CA Suraj Lakhotia Admin
CPI wont change much in a day.
Then sir what is the relevance of the example mentioned in the question. Also say will my solution be wrong if I consider the old CPI for payment due on 01/01/20X4?