Whether Profit/loss on sale of fixed asset is timing difference or permanent difference as per AS 22 ?
Whether asset held for sale is timing difference or permanent difference as per AS 22 ?
CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)
17 September 2012
Gunjan Tulsyan
(Article)
(222 Points)
Replied 17 September 2012
Accordingto my knowledge the holding of asset for sale does not form a timing difference...!!!
Gaurav Joshi
(M.Com)
(44 Points)
Replied 19 September 2012
correct, there is not timing difference, depreciation on fixed asset causes timining difference not profit/ loss on sale..
surbhi malik
(ca)
(28 Points)
Replied 19 September 2012
Yes there is a timing difference on profit on sale of fixed assets as per AS-22
CA Gopal Somani
(Associate Consultant at Infosys Ltd.)
(464 Points)
Replied 20 September 2012
According to AS -22,Profit/ Loss on sale of fixed assets or on assets held for sale is Timing Difference, because difference that emerged due to difference in depreciation is set off by profit/loss at the time of sale of fixed assets, hence it is timing difference....
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