I wanted to know that, Chartered Accountants usually maintain a whole library of books which has annual publications added every year as well as permanent books. We also have student journals, and professioal journals that we receive on a monthly basis. Then as per Accounting Standards will they be treated as Inventory under AS-2 or Fixed Assets under AS-10 and why, also what will be the tax treatment for the same and treatment as per Audit Standards??
In my view. All such books can be expensed off as Books and Periodicals. Since the lifetime of any book is not more than 1 year, as new edition is printed every year and such new edition precedes the old edition. Hence it cannot be said that useful life of a book is more than one year.
You can also wait for other views.
For Income-Tax and Accounting Standard details mostly we prefer only latest edition. The old edition book may not be used if new edition printed. Considering this, books with useful life 1 year is normal and we can charge-off these to P&L instead of accounting this under FA.
Thank you everyone for your help :)
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