Balance sheet
This query is : Resolved
21 July 2010
In balance sheet, how plot of land is valued??
at cost - Depreciation or
Cost or NRV whichever is lower..????
at cost - Depreciation or
Cost or NRV whichever is lower..????
21 July 2010
Plot of Land is valued at cost unless the owner is a trader in plots of land.
21 July 2010
if land is held as Assets then it should be valued at Cost.
if land/plot is held as stock in tread then it should be valued at cost or net religible value, which ever is less.
if land/plot is held as stock in tread then it should be valued at cost or net religible value, which ever is less.
21 July 2010
In the accounts we follow historical cost basis which means fixed assets are shown on cost price. If we will not follow cost basis then there will be lot of problems which will arise. Firstly, there is daily flutuations in the price of the assets and if we will not follow cost basis then daily balance sheet will be changed.
Moreover daily balance sheet changes are not possible as it will be impossible.
Secondly, assets are purchased for use in the business and not for sale. Hence we should not concern about its sale value when our objective is not to sale them.
Moreover daily balance sheet changes are not possible as it will be impossible.
Secondly, assets are purchased for use in the business and not for sale. Hence we should not concern about its sale value when our objective is not to sale them.
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