Accounting treatment of an asset with zero book value
This query is : Resolved
saikrishna.boyina
(Querist)
16 July 2010
Hi,
What would be the accounting treatment in the following case ?
If the asset has zero book value but in perfect working condition.
Please also cite the relevant accounting standards that need to be followed.
Thanks,
Sai Krishna
What would be the accounting treatment in the following case ?
If the asset has zero book value but in perfect working condition.
Please also cite the relevant accounting standards that need to be followed.
Thanks,
Sai Krishna
CMA Ramesh Krishnan
(Expert)
16 July 2010
For fixed assets Accouting standard 10 need to be refer. Generally the Assets will be depreciated at 95% and balance 5% keep as salvage value.
If the asset 100% depreciated and still working condition, you can treat the present realisable vaule as book value
If the asset 100% depreciated and still working condition, you can treat the present realisable vaule as book value
CA Ravi Sisodia
(Expert)
17 July 2010
i think revaluation of fixed assets can be done.
Venkat Rao Marella
(Expert)
17 July 2010
Get the technical evaluation done, value the FA and consider the value in accounts.
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