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A/c Treatment of Livestock


Neelam (Student CA Final,)     16 June 2010

Neelam
Student CA Final  
 6 likes  116 points

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Please help me for solving this problem ???/

what is the accounting treatment of livestock ???

I mean whether livestock can be treated as fixed assets ??

If yes then in that case how to measure the value of livestocks every year ,,

m asking such a question becoz as per sec.43 of Income Tax livestocks r not depreciable Assets ,,,

Please explain relevant AS  or relavant Law / Act ,,????

avater

Aditi Kaur (Practising CA)    16 June 2010

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CA. Praveen Gupta

CA. Praveen Gupta (CA )     16 June 2010

CA. Praveen Gupta
CA  
 18 likes  346 points

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fixed assets

 

Historical cost

1 Like
SUDHIR & PRADEEP JI

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA)     16 June 2010

SUDHIR & PRADEEP JI
CA FINAL+LLB + DISA 
 60 likes  2294 points

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Dear neelam Livestock to be tretaed as Fixed assets & they r valued at there historical cost value
Sarang Agarwal

Sarang Agarwal (Chartered Accountant)     17 June 2010

Sarang Agarwal
Chartered Accountant 
 36 points

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Can we make a provision for their disposal (death, in this case), as at the time of their death, when we write off their book value, it will lead a greAT IMPACT ON PROFIT OF THAT YEAR.

Amir

Amir (Learner)     17 June 2010

Amir
Learner 
 724 likes  4001 points

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Ahem.........! Para 3 of AS-10 reads as follows- This standard does not deal with accounting for the following items to which special considerations apply: (iv) Livestock
Kalpesh Chauhan,

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))     17 June 2010

Kalpesh Chauhan,
Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com) 
 1034 likes  8299 points

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 It should be treated as Fixed cost.

It is because it is mostly used in  Farm Accounting.


Giridharan K

Giridharan K (Student)     17 June 2010

Giridharan K
Student 
 1 likes  123 points

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Originally posted by : Neelam

Please help me for solving this problem ???/

what is the accounting treatment of livestock ???

I mean whether livestock can be treated as fixed assets ??

If yes then in that case how to measure the value of livestocks every year ,,

m asking such a question becoz as per sec.43 of Income Tax livestocks r not depreciable Assets ,,,

Please explain relevant AS  or relavant Law / Act ,,????

It should be understood that accounting and taxation are different. For accounting Livestock should be treated as fixed asset.  however in  case of taxation depreciation is not allowed and it is fully allowed when the livestock dies of no more useful.

saranraj

saranraj (CA FINAL)     17 June 2010

saranraj
CA FINAL 
 10 likes  417 points

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Dear Friends,

All those who said to treat LIVESTOCK as FIXED ASSETS must definitely take a glance on para 3 of the ACCOUNTING STANDARD.....I hope ur opinions will surely change...

R. S A R A N R A J

CA. Mohd. Adnan Ansari

CA. Mohd. Adnan Ansari (Business)     17 June 2010

CA. Mohd. Adnan Ansari
Business 
 4 likes  89 points

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Livestock is treated as fixed assets, but not depreciable, shown at historical cost.

When livestock is died and anything from the carecase of the livestock is received, Deducted from the historical cost and deduction is taken of remaining amount by debiting profit and loss account

CA Usha Rani Challa

CA Usha Rani Challa (CA)     17 June 2010

CA Usha Rani Challa
CA 
 12 likes  139 points

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Live Stock can not be treated as Fixed Asset, as AS-10 exclusively specifies that that standard does not apply to Live Stock. Then how can we treat it as Fixed Asset?

I think it should be treated as seperate asset better it should be treated as deferred revenue expenditure and charge off the amount to Profit & Loss based on its life.


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