Classification of Wind Power Plant Under Ind AS | Finance Lease or Property, Plant, and Equipment

This document explores the classification of a wind power plant owned by a Central Public Sector Entity (CPSE) under Indian Accounting Standards (Ind AS), specifically focusing on the distinction between finance leases and property, plant, and equipment (PPE). It delves into the complexities surrounding the classification of the wind plant, which operates under a Power Purchase Agreement (PPA) with Indian Railways, and highlights the implications of Ind AS 116 regarding lease accounting. By examining the relevant provisions and the circumstances surrounding the plant’s operation, this document aims to provide clarity on the correct accounting treatment in accordance with the standards.

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