Ind AS 16-Property, Plant and Equipment

This query is : Resolved 
Quick Summary
This discussion clarifies the accounting treatment of an asset purchased for Rs. 12 Lakhs with a one-year useful life under Ind AS 16. The asset would be recognised on the balance sheet. The question arises whether charging it to the P&L account immediately, given its short lifespan, would significantly affect Q3 results, but this is not the correct approach for asset accounting.

Profile Image

Profile Image

(Querist)
31 August 2023 Say, I have bought an asset for Rs. 12 Lakhs on 1 December 2022. The expected useful life of asset is 1 year. Where the asset is shown in balance sheet on 31 March 2023?
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
31 August 2023 Charge it to p and l account as the life is one year.
Profile Image

Faheemuddin Mohammad

Profile Image

Faheemuddin Mohammad (Querist)
01 September 2023 Doesn't it substantially affect my Q3 Result?
Profile Image

CA R SEETHARAMAN

Profile Image

CA R SEETHARAMAN (Expert)
01 September 2023 That can't be the issue.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member Dinesh kumarDinesh kumarPro Member Chandan KumarChandan KumarPro Member Vinay doshiVinay doshiPro Member GIRIDHARGIRIDHARPro Member Joseph RenjiJoseph Renji
Subscribe to Pro
Join an elite circle of professionals



Answer Query



Quick Links



Browse by Category