Our firm has purchased machines over the last few years on which we have availed Capital Subsidy under CLCSS Scheme. The Receipt of Capital Subsidy was effected to Reserve & Surplus Heading in the Balance Sheet & not reduced the Fixed Asset amount by the Same. We have availed Depreciation on full amount. We have taken in to account the 5 years for which (there was a clause in the awarding of Subsidy scheme) the machinery was to be retained. We intend to reduce the Machinery Value by the Subsidy amount at the lapse of the 5th Year. Is it a wrong practice.? If so advise me.
Menu
Capital Subsidy effect in Balance Sheet
Replies (1)
Change can be done
the difference should be shown as a prior period item
Recent Topics :
- TDS return filing
- Need formats of FS as per Co act 2013 in soft copy
- Remittance to italy
- Invoice made but goods not sent
- How Do CA Firms Manage Client Document Collection
- How do CA firms manage pending client documents du
- How to find a good CA
- Rcm on rent paid
- Clarify on GST Application
- Residential status for overseas students visitin
Related Topics :
CAclubindia
