How are material initial direct costs (other than costs related to Ijarah assets) treated by the lessor?

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a. Expensed in the income statement in the period in which they are incurred

b. Added to the cost of the Ijarah asset

c. Capitalised and allocated over the lease term in a manner consistent with the allocation of Ijarah revenue

d. Charged and recovered from the lessee

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Related Book For answer-question

Financial Reporting For Islamic Financial Institutions Accounting Standards Interpretation And Application

ISBN: 9781032464022

1st Edition

Authors: Abdul Rauf Mahar, Ayesha Bhatti, Muhammad Junaid Ashraf, Asfand Zubair Malik

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Question Posted: Mar 11, 2024 03:32 AM

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How are material initial direct costs (other than costs related to Ijarah assets) treated by the lessor?

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Financial Reporting For Islamic Financial Institutions Accounting Standards Interpretation And Application

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