A/c Treatment of Livestock

Student CA Final,



Please help me for solving this problem ???/

what is the accounting treatment of livestock ???

I mean whether livestock can be treated as fixed assets ??

If yes then in that case how to measure the value of livestocks every year ,,

m asking such a question becoz as per sec.43 of Income Tax livestocks r not depreciable Assets ,,,

Please explain relevant AS  or relavant Law / Act ,,????

 
Reply   
 
CA



fixed assets

 

Historical cost


Total likes : 1 times

 
Reply   
 


CA FINAL+LLB



Dear neelam Livestock to be tretaed as Fixed assets & they r valued at there historical cost value
 
Reply   
 
Chartered Accountant



Can we make a provision for their disposal (death, in this case), as at the time of their death, when we write off their book value, it will lead a greAT IMPACT ON PROFIT OF THAT YEAR.

 
Reply   
 
Learner



Ahem.........! Para 3 of AS-10 reads as follows- This standard does not deal with accounting for the following items to which special considerations apply: (iv) Livestock
 
Reply   
 
Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)


 It should be treated as Fixed cost.

It is because it is mostly used in  Farm Accounting.


 
Reply   
 
Student



 

Originally posted by : Neelam

Please help me for solving this problem ???/

what is the accounting treatment of livestock ???

I mean whether livestock can be treated as fixed assets ??

If yes then in that case how to measure the value of livestocks every year ,,

m asking such a question becoz as per sec.43 of Income Tax livestocks r not depreciable Assets ,,,

Please explain relevant AS  or relavant Law / Act ,,????

It should be understood that accounting and taxation are different. For accounting Livestock should be treated as fixed asset.  however in  case of taxation depreciation is not allowed and it is fully allowed when the livestock dies of no more useful.

 
Reply   
 
CA FINAL



Dear Friends,

All those who said to treat LIVESTOCK as FIXED ASSETS must definitely take a glance on para 3 of the ACCOUNTING STANDARD.....I hope ur opinions will surely change...

R. S A R A N R A J

 
Reply   
 
Business



Livestock is treated as fixed assets, but not depreciable, shown at historical cost.

When livestock is died and anything from the carecase of the livestock is received, Deducted from the historical cost and deduction is taken of remaining amount by debiting profit and loss account

 
Reply   
 
CA



Live Stock can not be treated as Fixed Asset, as AS-10 exclusively specifies that that standard does not apply to Live Stock. Then how can we treat it as Fixed Asset?

I think it should be treated as seperate asset better it should be treated as deferred revenue expenditure and charge off the amount to Profit & Loss based on its life.

 
Reply   
 

LEAVE A REPLY

Your are not logged in . Please login to post replies

Click here to Login / Register  



 


Search Forum:





× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x
  SHARE THIS