Conversion of fixed assets into stock in trade
This query is : Resolved
27 August 2017
Dear friends/professionals, if a company converted its fixed assets into inventory then on which value accounting entry to be made (f m v or cost) whether in the books of account of the company provision for capital gain shall be made. whether differed tax assets/liability to be made....
27 August 2017
Accounting to be done on FMV.
27 August 2017
No Capital Gain arise now so no need to made any provision.
27 August 2017
But if you want you can create DTL.
Message likes :
1 times
28 August 2017
thanks Rashmi ji. IND AS-2 is silent on above query but it provide that inventory shall be disclosed at lower of cost and NRV. IND AS -2 gives the definition of cost and in that definition cost means actual cost incurred by company to making inventory in current location. On the other hand if we take FMV that we have to create capital reserve to enhance the cost to FMV whether it is allowed by IND-AS.
28 August 2017
IND AS-12 does not allowed to made DTL on this particular transaction because it does not effects over book profit and profit for income tax purpose.
28 August 2017
IND AS-12 does not allowed to made DTL on this particular transaction because it does not effects over book profit and profit for income tax purpose.
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
- TDS 194-T applicability
- Fixe term employment
- Is any professional CA is here please reply
- GST ITC REVERSE
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Putting a heading on received mail
- Section 50-fixed asset-->building ceases to exist
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Regarding Applicability of Tax Audit u/s 44AB
- Reprocessing of rectification order AY 2025-26
- 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
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
