Some query : as ?
This query is : Resolved
11 November 2011
1.AS-2 Valuation of inventory :
company borrow money for working capital. can this borrowing cost include in inventory ?
2. can company follow cash system for income tax ??
3. can professional persona prepare books of a/c under cash system . follow as? or not?
4. AS-25 interim financial report is only applicable to enterprise prepare quarterly result ??
1.AS-2 Valuation of inventory :
company borrow money for working capital. can this borrowing cost include in inventory ?
2. can company follow cash system for income tax ??
3. can professional persona prepare books of a/c under cash system . follow as? or not?
4. AS-25 interim financial report is only applicable to enterprise prepare quarterly result ??
12 May 2012
1. Borrowing cost will not form part of inventory cost.
2. A company can follow cash system for Income Tax, but in that case it will have to maintain 2 sets of account. 1 on accrual basis under Companies Act and other on cash basis for Income Tax.
Therefore, it is advisable to prepare books on accrual basis.
3. AS 1 requires that accounts shall be maintained on accrual basis only.
Therefore, professionals or for that matter everyone should maintain accounts on accrual basis.
4. AS 25 is applicable only to enterprises who prepare interim financial statements.
2. A company can follow cash system for Income Tax, but in that case it will have to maintain 2 sets of account. 1 on accrual basis under Companies Act and other on cash basis for Income Tax.
Therefore, it is advisable to prepare books on accrual basis.
3. AS 1 requires that accounts shall be maintained on accrual basis only.
Therefore, professionals or for that matter everyone should maintain accounts on accrual basis.
4. AS 25 is applicable only to enterprises who prepare interim financial statements.
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
- ADVANCE PAYMENT OF ADVOCATE
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Eway bill generation from place other than registeted
- GST rate and HSN code for sale of racing horses
- Query – TDS on purchase of land from NRI under Income-tax Act, 2025
- Management System (IMS)
- DIN reactivation
- Condonation . E-Verification of last year return .
- 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
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
