Solve this?????????
This query is : Resolved
25 July 2007
A company transfered land from FA to CA @ market price and adjusted the excess value under capital reserve instead of revaluation reserve. In subsiquent year the value was w/d gradually with declining market value. Whether this would constitute unusual accounting? AS 10
Shashi Mohan Jha
(Expert)
25 July 2007
Transfering of FA to CA @ market price in what circumstance..?? become an assets for sale
25 July 2007
When A capital asset is converted into current asset, Difference should be posted to Capital reserve.(But not revaluation reserve)
once the FA is converted into CA, AS 10's role will end and AS 2 will come into force.
It should be valued at Cost or NRV whichever is lower.
So, Company's treatment is correct, If they follow the abovesaid principle.
once the FA is converted into CA, AS 10's role will end and AS 2 will come into force.
It should be valued at Cost or NRV whichever is lower.
So, Company's treatment is correct, If they follow the abovesaid principle.
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