becose of we realised land into cash withen one year
pramodkumarmohanty (None) (64 Points)
04 December 2015becose of we realised land into cash withen one year
CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 04 December 2015
None can claim that Land can never be a Current Asset.
If the nature of trade is trading in lands, then its surely a current asset for trader
However, Mere realising the land within 1 year do not makes it current asset.
CA Prateek Garg
(CA in Practice)
(1444 Points)
Replied 07 December 2015
What is to be seen is 'Intention to Realise the Asset' not 'Ability to Realise the Asset'...
If the intention is to realise the land within 1 year then it can be classifed as current asset but if intention is to retain the asset beyond 1 year then it is to be classified as fixed asset
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