Valuation of fixed asset
This query is : Resolved
11 July 2015
I have purchased a fixed asset of Rs.70000 of which Rs.20000 have been paid by HPCL to me for such purchase.
For what value i must record the fixed asset in my books whether full 70000 of 50000
For what value i must record the fixed asset in my books whether full 70000 of 50000
11 July 2015
As per Accounting Standard 12- Government Grants, there are two methods. Either of the two you may choose.
1. Reduce the value of grant received from the asset and then show the net amount as the 'value of the asset'. (Value of asset- Rs. 50,000/-.)
Else,
2. Show the amount received on the 'liabilities side' of the balance sheet and write to P&L account over the period of the grant. (Hete, cost of asset- Rs. 70,000) & (Rs. 20,000 as grant received in liabilities side)
1. Reduce the value of grant received from the asset and then show the net amount as the 'value of the asset'. (Value of asset- Rs. 50,000/-.)
Else,
2. Show the amount received on the 'liabilities side' of the balance sheet and write to P&L account over the period of the grant. (Hete, cost of asset- Rs. 70,000) & (Rs. 20,000 as grant received in liabilities side)
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
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Average Cost Of High Quality Diamonds
- ITR 4 OR ITR 3 WHICH FORM CHOOSE
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
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
