As-10 capitalisation of land & building
This query is : Resolved
SAI CHANDU B
(Querist)
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.
SAI CHANDU B
(Querist)
09 February 2013
Under what head I should capitalise?
SAI CHANDU B
(Querist)
09 February 2013
I want to capitalise land & building separately and claim depreciation on building portion.
CA.Sourabh Sethia
(Expert)
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.
SAI CHANDU B
(Querist)
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.
CA.Sourabh Sethia
(Expert)
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
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Taxation of crypto futures in India Fy 2026- 2027
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
