Explain, in brief, the accounting treatment for an asset given under Operating Lease in the books of the Lessor.

The accounting treatment for an asset given under Operating Lease in the books of the Lessor is given as under The Lessor should present an asset given under Operating Lease as PPE in its balance sheet.Lease income from operating leases should be recognized in the Statement of Profit and Loss on a straight-line basis over the lease term, unless another systematic basis is more representative of the time pattern in which benefit derived from the use of the leased asset is diminished.Depreciation should be recognized in the books of the lessor. The depreciation of leased assets should be on a basis consistent with the normal accounting policy of the lessor for similar assets, and the depreciation charge should be calculated on the basis set out in AS 10.The impairment loss on assets given on operating leases are determined and treated as per AS 28.