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accounting query

rrganesh (xxx) (37 Points)

17 September 2009

accounting of a small calculator as an expenses or as an asset? What is related AS

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20 Replies

Kaustuv (Practicing CA) (1773 Points)
Replied 17 September 2009

expense it off!!!

rohan (article) (37 Points)
Replied 17 September 2009

Capitalisation largely depends upon whether the amount is material though benefit receivable for more than one year,....so treat it as an expense.

Ashish M (Chartered Accountant) (2731 Points)
Replied 17 September 2009

STATIONARY ITEM............TREAT IT AS EXPENSE...........NO TWO CONCLUSIONS OVER IT .!!!!!!!!!!!!!!!!!!!

triumph-CMA (Chartered Accountant) (503 Points)
Replied 17 September 2009

charge to p/l as revenue expns

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 17 September 2009

Originally posted by :rohan
"	Capitalisation largely depends upon whether the amount is material though benefit receivable for more than one year,....so treat it as an expense.	"

101% agree- Materiality should be considerd while recording transaction

Pammi Srivastav (Assistant Finance Officer ) (84 Points)
Replied 17 September 2009

Calculator is to be considered in stationary and should be expensed.

_Jay_ (Associate) (30 Points)
Replied 17 September 2009

"Fixed asset is an asset held for an intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business" - as per AS - 10. Also it depends upon the value of the assets and the period used for more than one year. Hence small calculator should be charged as an expense.

(Guest)

It is now cleared that caculator must be accounted as revenue expenses.

You should maintain a seperate record for calculators. As In a corporate houses where many nos of calculators have been purchased and after a year this record will be helpful for you to keep track.

>> Rajesh

CA Hemant Kumar (CA, LLB (p), B.Com) (204 Points)
Replied 17 September 2009

treat is as expense........

any expense if it is not material in nature my be treated as exp.

CA Sumit Arora (CA) (1410 Points)
Replied 17 September 2009

Treat it as an expense Related To Accouting Standard 1

Materiality concept.

Rahul Gupta (CA Final Student) (1780 Points)
Replied 17 September 2009

Hello.

It depends upon the value and life of an asset.

If the value is "Material" enough then has to be capitalised and vice - versa.

However, a Calculator can last for more than a year but it does not mean that it has to be capitalized. So main factor remains is that of "Materiality"

Hence if the amount is significant it has to be capitalized, otherwise debit it to P & L A/c.

Regards

Rahul Gupta