AS-10 Query

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My first question.

1.AS-10 is not applicable to livestock then what will be the treatment for the entity having 10 horses? If i am not the dealer of livestock and if i am in both the cases what will be the treatment?

My second question

2.AS-10 is not applicable for expenditure on real estate development ,explain me what I have written in my second question's line of as-10,what it wants to say and why,is there any reason behind these?

Replies (2)

CA Shahrukh khan

Assistant Manager

48 Points Posted on 15 June 2011

Hi dear

Ans. 1 As-10 in not applicable and in both the cases ask by livestock is valued at Net realisable value and nothing else.

Viren

Chartered Accountant

132 Points Posted on 15 June 2011

Dear friend,

Reason 1. For live stock , you will recognise it at Net realisable value in balance sheet if you are not the dealer of it.

But if you are dealer of live stocks than that would form part of your inventory and accordingly at net realisable value you will recognised your inventory.

Reason 2. For expenditure on real estate development , Since this part will be covered in AS -7 " Construction contract" , It is out side the perview of AS -10.

All the Best.