As-26 (intengible assets)
This query is : Resolved
26 June 2012
I have one query regarding AS- 26 (intengible Assets).... Suppose I Purchase an Assets worth Rs. 100000 as on 01.04.2005 and its life is 10 year. I forgot to amortization its value in book of accounts. in the F.y.2011-12 i realized that I forgot to amortization its value in book of accounts. now what type of treatment should i do in books??? please solve this Queiry ASAP
26 June 2012
excerpt from AS 5:
16. The term ‘prior period items’, as defined in this Statement, refers only to income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods. The term does not include other adjustments necessitated by circumstances, which though related to prior periods, are determined in the current period, e.g., arrears payable to workers as a result of revision of wages with retrospective effect during the current period.
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Given case would fit in an omission of statement.
Accumulated amortisation till opening balance sheet to be shown as prior period expense.
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however one may argue that this is not originated in the current year since depreciation was to be calculated for each respective year. Hence allow the cummulative amortisation be accounted in opening retained earnings.
16. The term ‘prior period items’, as defined in this Statement, refers only to income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods. The term does not include other adjustments necessitated by circumstances, which though related to prior periods, are determined in the current period, e.g., arrears payable to workers as a result of revision of wages with retrospective effect during the current period.
----------------------
Given case would fit in an omission of statement.
Accumulated amortisation till opening balance sheet to be shown as prior period expense.
-----------------------------
however one may argue that this is not originated in the current year since depreciation was to be calculated for each respective year. Hence allow the cummulative amortisation be accounted in opening retained earnings.
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