Accounting of fixed asset
This query is : Resolved
22 November 2014
i have an query if asset is under WIP and some income receive from it what is the treatment. for eg- i have an asset valued Rs 100 crore and asset is completed but no completion certificate received till date and income earn from it Eg. Rent than what is the treatment of rent is this revenue income or it should be less from Capital WIP????
please provide me Para of AS-10 in which it written.
please provide me Para of AS-10 in which it written.
Amol S Joglekar
(Expert)
22 November 2014
The asset is meant for generating income. Merely because any asset started earning income before its competion can NOT be said to be decrease in the capital cost. It will be far from reality. The rent has to be accounted for as revenue, which in fact, it is. (There is no any contrary remark to this in AS 10 by ICAI)
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Rupesh Jain
(Expert)
25 November 2014
rent income will taxable for the year and taking as income during the period of installation of business.
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