AS-5

This query is : Resolved

Share Report Follow Query Ask a Query

C.A. LINESH PATIL

C.A. LINESH PATIL (Querist)
Follow

17 January 2011 whether profit or loss from sale of assets is extra ordinary item under AS-5 or not.

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

17 January 2011 If sale of assets is clearly distinct from ordinary activities of the entity and are not expected to recur frequently or regularly,it may be considered as extraordinary item as per AS-5.

C.A. LINESH PATIL

C.A. LINESH PATIL (Querist)
Follow

17 January 2011 but sir AS-5 issued by iCAI contains an example which include sale of assets under ordinary activity.
i think this would be consider as incidental activity to furtherance of business

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

17 January 2011 It is a mater of judgment why because the definition of ordinary activity is so wide that it encompasses almost any activity a business engages in and it will thus be noticed that extraordinary items are very rare.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now