Recording of fixed asset
This query is : Resolved
03 January 2015
Hello experts,
As we know at the time of capitalisation we have to deduct NRV of scrap from the total capitalisation amount and have to book a new asset as a scrap.
so if a company did not consider this point at the time of capitalisation in previous year in whicha capitalisation instrumented.
then in current year when Scrap is disposed and realise, what should be the treatment of receipt from scrap as this is originally should be deducted from capitalised value.
As we know at the time of capitalisation we have to deduct NRV of scrap from the total capitalisation amount and have to book a new asset as a scrap.
so if a company did not consider this point at the time of capitalisation in previous year in whicha capitalisation instrumented.
then in current year when Scrap is disposed and realise, what should be the treatment of receipt from scrap as this is originally should be deducted from capitalised value.
03 January 2015
Even Now you can credit the amount of scrap to the asset account. It will give you gain or loss as the case may be.
03 January 2015
Amol, then depreciation wrongly charged in previous year will not cured and it will have impact on current year financial also...
Please answer me with reference of any AS or guidance note...
Please answer me with reference of any AS or guidance note...
03 January 2015
If you are so meticulous, then prepare a schedule which DATEs back from the first year of asset purchase and make the rectification entries through Profit and Loss Adjsutment Account for the all the years. That is better.
03 January 2015
But is this allowed for a limited company...
Because this is the previous year matter... .
So what is permissible action allowed in current financials....
And working is no bar for me...
Kindly give me permissible actions and their respective reference too...
Because this is the previous year matter... .
So what is permissible action allowed in current financials....
And working is no bar for me...
Kindly give me permissible actions and their respective reference too...
03 January 2015
These are the permissible actions.
Make a detailed working....(In fact we made such detailed workings in deferred tax asset/liability case...right?)
See, the point is, ERROR has already occurred. Whether permissible or not is not a question now......We need to rectify the same from GOOD GOVERNANCE view point.
The disallowability under income tax shall be dealt by the tax auditor. Provide this working to tax auditor as well.
Make a detailed working....(In fact we made such detailed workings in deferred tax asset/liability case...right?)
See, the point is, ERROR has already occurred. Whether permissible or not is not a question now......We need to rectify the same from GOOD GOVERNANCE view point.
The disallowability under income tax shall be dealt by the tax auditor. Provide this working to tax auditor as well.
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
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- ITR selection for salaries and capital gain less than L
- ITR 2 Short Term gain & Long term gain
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- Tax liability on income of freelancer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
