Hello all.

I would like to seek your comments on the following situation.

Suppose Company X has a capitalization policy of Rs 5,000 (i.e expenditure of capital nature above Rs. 5,000 be capitalized while that falling below this threshold be expensed out). Now the company purchases the following from a supplier in a single transaction.

> 5 Chairs (Rs 2,000 each) - Rs. 10,000
> 4 Tables (Rs 1,000 each) - Rs. 4,000
> 1 Conference table - Rs. 10,000

Total Amount Paid - Rs. 24,000


The question thus is, how will the above transaction be treated in light of the company's capitalization policy?

Should we compare the value of the transaction (Rs. 24,000) against the threshold (Rs. 5,000)?
Should the value of each furniture type (i.e Rs. 10,000 for 5 chairs) be compared with the threshold (Rs. 5,000)?, or
Should the value of a single item (One chair - Rs. 2,000) be matched against the threshold?

Is any standards applicable in this case.

Pl give your expert opinion on the following querry.

The company is in loss for last 3 years. Deffered tax assets is being created for last 3 years.In the current year is loss but company has modified its plant and it is expected that in future profit will start.
In 2009-10, whether co should make deferred tax assets for losses.what are the basis of virtual certainty.
The company expects profit from 2010-11, so it will serve the purpose for virtual certainty.

Further, pl let me know if deferred tax assets is created on the asis of future projections, what will be consequences because AS-22 does not define the meaning of virtual certainty.

Thanks and Regards

I AM DOING AN AUDIT OF CONSTRUCTION FIRM, THE HONOURABLE ITO HAS SUGGESTED MY CLIENT TO FOLLOW THE COMPLETED CONTRACT METHOD i.e TO RECOGNISE THE SALE WHEN SALE DEED IS REGISTERED, WHICH IS CONTRARY TO AS7(REVISED 2002), WHICH SUGGEST PERCENTAGE OF COMPLETION METHOD.
NOW, MY QUERY IS WHETHER I SHOULD GO WITH AS7 OR OBEY ITO...?

Dear Experts,

We have started a company inlast august (2009) we have been registered under SSI, PAN & Service tax and we have not taken TDS, ESI, VAT...

My Question is. I Have to give a salary certificate for a employ for his IT returns who is working from last oct 2009 first salary is November and last salary in march 2010. cani directly issue a salary certificate? or any legal procedure i have to approch
Salary: 25000/-
Conv: 20000/- toatl 27000/-

Please do needful.

Thanks in advance.

suppose there are 3 companies: ALtd. BLtd. CLtd. & DLtd.

Suppose ALtd. Holds 75% in BLtd.
CLtd. Holds 22% in BLtd.
DLtd. Holds 03% in BLtd.

AND

Altd. Holds 98% in CLtd.
DLtd. Holds 02% in CLtd.

Then what will be ALtd.'s share in BLtd.
97% OR 96.56%

KINDLY REPLY AS SOON AS POSSIBLE

Hi All,

I have small doubt about overhead.

What are the contents to be considered to calculate conversion cost in pharma companies?

Shall we take Depreciation on Computers used in Factory and Depreciation on Furniture & Fixtures etc..?

Clarify me if you know practically..........

Thanks

Dear Friends,

Can anybody guide me what will be presentation of buyer's credit in Balance sheet as per Indian Accounting Standards

Hi All.

Is there any difference between IFRS and IAS or both are one and same. There are, I think, around 48 IAS and 8 IFRS. Is it correct? Kindly explain.

Pl provide me the solution for the under querry:-

The co has issued 4% Cumulative Redeemable Preference Shares. Now in 2009-10, the co is in loss so dividend on Cum Re Pref. Shares has to be carry forward till the profit of the co.
I want to know whether any entyr is to be passed in current year book in spite of loss or it is to be shown as contingent liability till the profit.

Kindly provide me the solution.

Thanks

if payment is received from a client with TDS deduct. and we have received that payment on behalf of other client. so while paying back that amount again we have to deduct TDS. to whom we have to pay that amount,and we charge commission to client to whom we have to pay back that amount.