As per IFRS 16, in case any Security deposit is given for the lease without any consideration then the present value of the

Generally, in a lease agreement a security deposit is payable at the beginning of the lease term. This security deposit is generally refundable. As per Ind AS 109, Security deposit meets the definition of financial asset. As per Ind AS 109, security deposit should be recorded at its fair value on initial recognition. The difference between the actual amount of security deposit and fair value of security deposit should be amortized over the tenure of security deposit. User will enter the relevant details of security deposit in the lease summary. The system will create an amortization schedule of interest income and prepaid expenses. The system will automatically create and post the amortization of interest income and prepaid expenses.