hi there,
Our client maintains at H.O (where accounting activities takes place), a summarised fixed assets statement for showing gross block, addition, depreication & net block.. However in the absence of any rules on capitalisation they expense out items costing more than Rs. 5,000 also. Thus their (H.O) fixed assets statement wont match with the physical assets available at various branches. Their contention is that since branches maintain fixed asset register, the physical assets should not be compared with fixed asset register at H.O.
Can you please advise me on this, whether H.O is right in saying that they need not maintain F.A register as branches keep. I have a doubt, what abt internal control since branches only have custody of assets, do physical verification, maintain F.A register.
what are the rules and standards say on this.
CAclubindia
