Compensation against fixed assets, inventory
This query is : Resolved
27 June 2008
The Company has received Rs. 20 crore against fixed asset as Rs. 10 crore, Rs. 5 crore against the inventory and 5 crore against operating expenses. The Compensation was paid against non perfromance of certain activities for which the above assets we purchased and expenses were incured. The assets and inventory and assets is still with the company and the compensation doesnot include the transfer of the assets.The agreement is the compensation agreement and the company has not to pay any of the amount again in the future.
Please guide on the issue of accounting treatment of the same asap. Please guide me even to any guidance from ICAI regaridng the same
Please guide on the issue of accounting treatment of the same asap. Please guide me even to any guidance from ICAI regaridng the same
27 June 2008
Your query is not very clear please elobrate on the query as to what is the agreement, whether company has to pay these amounts back?
Essentially please elobrate on the transaction.
Essentially please elobrate on the transaction.
27 June 2008
The Company has received Rs. 20 crore against fixed asset as Rs. 10 crore, Rs. 5 crore against the inventory and 5 crore against operating expenses. The Compensation was paid against non perfromance of certain activities for which the above assets we purchased and expenses were incured. The assets and inventory and assets is still with the company and the compensation doesnot include the transfer of the assets.The agreement is the compensation agreement and the company has not to pay any of the amount again in the future.
Please guide on the issue of accounting treatment of the same asap. Please guide me even to any guidance from ICAI regaridng the same
Please guide on the issue of accounting treatment of the same asap. Please guide me even to any guidance from ICAI regaridng the same
27 June 2008
still not clear, can u call me.. @ 9849662616
27 June 2008
Will the assets get impaired if the intended activities are not performed?
Assuming that the compensation received is to compensate failure of performance by the party paying the compensation, amount received against operating expense will be set off against the receipt thereagainst.
Assuming that the compensation received is to compensate failure of performance by the party paying the compensation, amount received against operating expense will be set off against the receipt thereagainst.
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
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Traces submitting correction statement error
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Taxability of credit in canara bank ET & T section (NRO)
- Loss of interest in PF transfer from EPFO to Trust
- ITR-Capital Gain
- IT returns for fresh job holders
- F&O reporting in ITR
- ITR-3 File/Error Found
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
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
