As 10 - expert query - recognisition of fixed asset

Hello Everyone

My Query is, 

Purchased an Asset which i use in production progreses is having a life of 6months. Life of asset is falling in 2 Accounting periods(Pur date - Jan, Ends on June)

How the asset should be treated.

( Quoting relevent AS Paras is Highly appreciated )

Replies (2)

The purchase made by you cannot be termed as Asset. As per the above fact, it is being used in production process, hence it should be termed as Raw Material / consumable. Therefore, the purchase made in January can be claimed as expense in the year ending in march 13.

 

 

Regards,

Devendra Kulkarni

Hi Anil,

I need one clarification, whether such asset is used as an input in production process or  held for producing goods.

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