07 September 2009
what is the substantial part of fixed assets. my case is something like that: a company disposed its fixed assets for about Rs.54 lacs and it consist of less than 1% of it's fixed assets.now i want to know that whether it is substantial part of fixed assets or not
07 September 2009
For the words substantil no deenition has been given.So we can infer from that substantial means that part of fixed assets without which the company cannot function.If the company has sold 1% which is its main assets and company can not function and is in the process of termination we may assume it is substantial.
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