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Onerous Lease

MFMuslim Farooque9y ago
for example if a company is looking too get out of a lease agreement and lease term has 3 years left and books a provision for it based on 3 years payment, now can we call it a provision for onerous contract? and is the provision correct accounting treatment
P2-D2P2-D2Tutor9y ago#1
Hi, Yes, if we cannot get out of the contract and if there is no option to sub-let the property then we provide for the remaining years on the lease. Thanks
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