Dear Experts,
Could you please convey your views on the below query
Our company has received a service invoice pertaining to a capex items, the capital asset originally received in the year of 2010. However the vendor has not submitted the invoice at the in the year of suppy. upon reconciliation, it was found that the invoice has not been received and accounted, the same was informed to the vendor and vendor has supplied the invoice in the current financial year. The vendor has raised the invoice in FY 10 and paid the service tax also but not presented to our company.
The issue here is:
a) Our company is bound to follow Ind AS. Accordingly, how to account the prior period items and which accounting standard to be followed ?
b) How to provide the depreciation for the previous years i,e from FY 10 to FY 17 in the financial statements and under what accounting standard to be followed?
Our company can't restate previous year financial statements because of various limitations and even can't make the adjustment to the opening reserves and surplus.
Can i show the previous year depreciation as impairment loss in order to restate the asset value to the present carriying amount?
Please advise.
Thank you in advance
Best regards
Jagadeesh
CAclubindia
