116

: It eliminates the distinction between "operating leases" and "finance leases" for lessees. Almost all leases must now be recognized on the balance sheet.

In the Indian legal system, Section 116 appears across several major acts: : It eliminates the distinction between "operating leases"

: Lessees must recognize a Right-of-Use (ROU) asset and a corresponding lease liability . : It eliminates the distinction between "operating leases"

: You can find the full text of the standard on the ICAI website or detailed summaries on ClearTax . 2. Legal Statutes (India) : It eliminates the distinction between "operating leases"

: Companies can choose not to apply these rules to short-term leases (12 months or less) or leases of low-value assets.

is the Indian Accounting Standard that governs leases, aligning with the international standard IFRS 16 .