As-10.accounting for fixed assets

hy frnds...do u ve any notes/class/stdy matrl of AS10....plz post.thnx

hi all

The expenditure for bringing the asset to the current location and put to use state will be in nature of freight and may be installation charges but and not travelling.

Director's travelling expenses for discussing with vendors and finalizing terms are not qualified for capitalization.

Hence, it should be charged to P&L Account unless the company can demonstrate the direct nexus.

hey all

how to calculate depreciation of companies while making provisional balance sheet of the half year?

as i think depreciation should be calculated on the basis of days as per companies act (i.e. upto 30th september)

and depreciation as per income tax act shall be calculted for the half year on the basis of days.

is that correct? if not please correct me...

thanks in advance

Hi Pawan

Please post the querry seperately so it can get maximum hits and resposnses. It will be useful for others also.

Yes It should be Capitalised, Any Expenditure incurred in respect of bringing an assets into condition for intended use should be capitlised