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
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