As-10 capitalisation of land & building
This query is : Resolved
09 February 2013
A Company purchased a land together with building for a consideration (say Rs.1 crore).
No separate value allotted to Land & Building in the Sale deed.
How to allocate the cost between land & building for capitalisation in the books of accounts as per AS-10?
No separate value allotted to Land & Building in the Sale deed.
How to allocate the cost between land & building for capitalisation in the books of accounts as per AS-10?
09 February 2013
when you purchase land and building separately then only you can allocate their cost separately.
in this situation both will consider as one asset and shown their cost as 1 crore in the balance sheet on asset side.
in this situation both will consider as one asset and shown their cost as 1 crore in the balance sheet on asset side.
09 February 2013
Under what head I should capitalise?
09 February 2013
I want to capitalise land & building separately and claim depreciation on building portion.
11 February 2013
you cannot allocate because you cannot separate the building from the Land
and the same is also beneficial for you because you can claim depreciation on that value.
and the same is also beneficial for you because you can claim depreciation on that value.
11 February 2013
I don't think it is possible to claim depreciation on the entire amount. You have to classify it.
As per Accounting Standard-10, if several assets are purchased for a consolidated price, assets should be accounted at FAIR MARKET VALUE as determined by competent VALUER.
So, the value can be split between land & building.
As per Accounting Standard-10, if several assets are purchased for a consolidated price, assets should be accounted at FAIR MARKET VALUE as determined by competent VALUER.
So, the value can be split between land & building.
13 February 2013
but the building on land is a single asset
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TAN for Partnership
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- NON- SUBMISSION OF LLP FORM 3
- Long Term Service award taxability in hands of company
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Last year TDS Claim
- What is provisional receipt number for generation of form 16A
- Showing Gift from relative in ITR for this year
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
