Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Discussion > Accounts > AS >

A/c Treatment of Livestock

    Post New Topic
Pages : 1 2 3





Student CA Final,

[ Scorecard : 116]
Posted On 16 June 2010 at 20:15 Report Abuse

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 ,,????


Online classes for CA CS CMA



CA. Praveen Gupta
CA

[ Scorecard : 331]
Posted On 16 June 2010 at 21:36

fixed assets

 

Historical cost



Total thanks : 1 times




PRADEEP & SUDHIR JI
CA FINAL+LLB

[ Scorecard : 2289]
Posted On 16 June 2010 at 22:39

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



Sarang Agarwal
Chartered Accountant

[ Scorecard : 36]
Posted On 17 June 2010 at 12:03

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.




Amir
Learner

[ Scorecard : 3951]
Posted On 17 June 2010 at 12:39

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



Kalpesh Chauhan,
Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)

[ Scorecard : 8160]
Posted On 17 June 2010 at 12:59

 It should be treated as Fixed cost.

It is because it is mostly used in  Farm Accounting.





Giridharan K
Student

[ Scorecard : 123]
Posted On 17 June 2010 at 13:54

 

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.




saranraj
CA FINAL

[ Scorecard : 396]
Posted On 17 June 2010 at 14:44

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




CA. Mohd. Adnan Ansari
Business

[ Scorecard : 84]
Posted On 17 June 2010 at 15:55

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




CA Usha Rani Challa
CA

[ Scorecard : 133]
Posted On 17 June 2010 at 16:37

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.



There are 21 Replies to this message








Related Files








Related Threads


Post your reply for A/c Treatment of Livestock



Your are not logged in . Please login to post replies

Click here to login


Not a member yet ?? Click here to signup

Message







    

  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.



Forum Home | Forum Portal | Member Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads This Month | Forum Stats | Unreplied Threads

back to the top