As-5
This query is : Resolved
05 October 2011
As per AS-5 does every activity distinct from ordinary activities should be disclosed as extra ordinary items? E.g gain/loss on sale of fixed assets, rent received on ideal property, interest received on bank.
CA Nikhil Jhanwar
(Expert)
05 October 2011
As per AS-5,
1. Any items of ordinary activities which are of considerable size & nature and relevant for disclosure to explain the performance of enterprise should be separately disclosed. E.g. Profit on sale of fixed assets, litigation settlements etc.
2. Any activity which is clearly distinct from ordinary activity and doesn't recur so frequently should be disclosed as extra ordinary items. E.g. Loss due Earthquakes, Grants etc.
Thus the examples you have given are part of ordinary activities and classify under Point No. 1
1. Any items of ordinary activities which are of considerable size & nature and relevant for disclosure to explain the performance of enterprise should be separately disclosed. E.g. Profit on sale of fixed assets, litigation settlements etc.
2. Any activity which is clearly distinct from ordinary activity and doesn't recur so frequently should be disclosed as extra ordinary items. E.g. Loss due Earthquakes, Grants etc.
Thus the examples you have given are part of ordinary activities and classify under Point No. 1
07 October 2011
Mr. expert Nikhil, in which book you have read that gain/loss on sale of fixed assets, rent received on ideal property, interest received on bank etc. is ordinary activities of the business.
Can you find any business where they do business of only buying & selling of fixed assets.
Be sure before giving any reply to any question on this site.
Can you find any business where they do business of only buying & selling of fixed assets.
Be sure before giving any reply to any question on this site.
07 October 2011
Mr. expert Nikhil, in which book you have read that gain/loss on sale of fixed assets, rent received on ideal property, interest received on bank etc. is ordinary activities of the business.
Can you find any business where they do business of only buying & selling of fixed assets.
Be sure before giving any reply to any question on this site.
Can you find any business where they do business of only buying & selling of fixed assets.
Be sure before giving any reply to any question on this site.
CA RICHA BADALIA
(Expert)
07 October 2011
Mr Dhaval first let me say you that you should speak properly in a public forum as people are here to share and gain knowledge and not to speak in a rude manner.
Secondly what Mr. Nikhil wrote is absolutely correct gain/loss on selling of fixed asset etc are not extra-ordinary items they are activities of ordinary nature and form an integral part of every business activity.If the size and nature of it are such that it is necessary to disclose it in financial statement seperately then it will be disclosed seperately..
Secondly what Mr. Nikhil wrote is absolutely correct gain/loss on selling of fixed asset etc are not extra-ordinary items they are activities of ordinary nature and form an integral part of every business activity.If the size and nature of it are such that it is necessary to disclose it in financial statement seperately then it will be disclosed seperately..
Message likes :
1 times
CA Nikhil Jhanwar
(Expert)
08 October 2011
Mr. Dhaval, If you are asking query you are also requested to rely on the information provided. Information is shared on this site after due research & knowledge. It is advisable to refer AS-5.
Thanks Ms. CA Richa Bothra for your valuable information......
Thanks Ms. CA Richa Bothra for your valuable information......
10 October 2011
I was not rude, but if you get hurt by that then I apologize on this public forum to you.
Thanks for reply.
Thanks for reply.
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
- Depreciation Chart Companies Act
- 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
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- 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
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- 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?
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
