Short term lease liability calculation - supporting documents needed
Summary:
Short term lease liability calculation - supporting documents needed
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We need your advice on short term lease liability calculation, we understand that the Short term Liability is calculated based on the sum of next twelve month’s present value which is equivalent to the principle amount for the payments made for next twelve months only, whereas customer expects the sum of next twelve months principle amount but based on the payments made for the entire remaining period, Customer wants to know the reason why is it considered only based on next twelve month payment and is there any accounting standard document or supporting document we can share to them justifying this, so that they can provide it to their auditors for confirmation and accordingly use it, please provide your inputs.