Hi,
can anyone please explain the accounting treatment on sale of laptops, monitors and desktops in India by Indian company which is originally recognized by USA company. cost and depreciation is claimed by USA company but where as it was used by Indian company and the same was sold by Indian company as unusable assets.
Pavan, I believe these are FOC assets for which your company does not have any accounting records except may be showing in FAR at Zero cost.
In this case, you have to first get your parent company's consent. Also, need to keep in mind about the STPI provisions pertaining to bonding-debonding of assets.
Once your parent company confirms back, you may dispose off the assets and treat the proceeds as miscellaneous incomes.
However, parent compnay has to adjust their books accordingly.
Shyam Joshi & Associates
Pune
B.Com
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CAclubindia
