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Accounting for fixed asset
Can a sound system installed in a theatre be treated as an capital expenditure and capitalised as per the accounting standard - 10???
i feel it can be because there is a future economic benefit derived from such systems considering the fact that viewers prefer the same ??
Replies (4)
I am of the view that it can be capitalised because there is optimism regarding future economic benefits I.e increase in footfall of viewers.
as per income tax it is a revenue expenditure but as per account it is capax.
Cit vs sagar talkies. 2010.
Thanks Raj and Saroj.
Considering i capitalise such sound systems and depreciate it in my books where as per income tax it ll treated as revenue expenditure there ll be a difference between the books and income tax thereby AS - 22 coming into picture right ?
wanted to confirm my understanding on this ?
also
there will be difference between the assets additions as per books and income tax records ??
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