Treatment of fixed assets not available for use
This query is : Resolved
CA.Aman Dugar
(Querist)
02 May 2008
A company shifted itself to new premises.The assets of old premises appearing in accounts proved worthless.The company is neither in a position to sell these assets nor it is able to use them.How these worthless assets be treated in accounts??
Hari Venkata Ramana
(Expert)
03 May 2008
As long as you dispose these assets you have to charge depreciation on these assets.
Since these assets became use less you have to apply the concept of impairment and make provision in your account as per AS-29.
Since these assets became use less you have to apply the concept of impairment and make provision in your account as per AS-29.
CA. Yayati Tyagi
(Expert)
03 May 2008
If you can sell the assets (even as scrap at nominal value ) you can get rid of it and can also book st capital loss. Otherwise also you can write off them in p&l as impairment loss (as asset carry no realisable value).
CA. Yayati Tyagi
(Expert)
27 May 2008
replied
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