Classification of Electric Vehicle Charging Infrastructure (EVCI) Assets Under Ind AS | PPE or Lease

This document explores the classification of assets related to Electric Vehicle Charging Infrastructure (EVCI) projects undertaken by an Energy Service Company (ESCO). It delves into the appropriate accounting treatment of these assets under Ind AS 16, Property, Plant, and Equipment, and contrasts this with the application of Ind AS 116, Leases.

The study evaluates whether the costs incurred by the company in setting up and operating EVCI should be classified as leases or capitalized as property, plant, and equipment, taking into account the ownership, control, and economic benefits associated with the infrastructure.

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