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 )
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.
KK & Company Chartered Accountant
Pune
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