1. Company engaged in large scale manufacturing and renting of machinery. Which Ind AS will apply to this machinery.
2. Above company purchases 1 Lacs Screws for Rs.10 crore at Rs. 1000 each. This screws are used in Machinery manufacturing. Which Ind As shall apply in this cas
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Applicable Ind AS?
Replies (6)
For renting of machinery Ind AS 116 Leases will applicable
If company takes loan for purchase then Ind AS 23 Borrowing will applicable otherwise Ind AS 2 Inventory will be applicable
If company takes loan for purchase then Ind AS 23 Borrowing will applicable otherwise Ind AS 2 Inventory will be applicable
I mean what this machinery and Screws will be considered it can't be considered as inventory as it's not for sale. Only is its is for regular sale then it will be covered Under Ind as 2
You should apply ind as 116
Based on my question let me know is Machinery & Screws are inventory or Investment property or PPE???
If it is held as inventory (stocked in warehouse for future use) it is IndAS 2, or else it is IndAS 16
Yes you can held it under IndAS 16 also under PPE
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