Dear Friends,
Our company received Air Condition(AC) as gift in the couse of normal business . whether it should be capitalised Or Not ?????
If Capitalised , at what value????
Pls. suggest me the accounting entry as well.
Very Very Thanks in advance
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CAPITALISATION OF ASSET RECIEVED AS GIFT
Replies (5)
At Rs. 100. just to show that an asset is existing.
Yes, u've can show it at nominal value of Rs. 100... like ambulances, if donated, are shown by hospitals
The above replies are correct as per AS which follows HISTORICAL COST METHOD...
JUST WANT TO ADD THAT THE SAME MIGHT NOT HOLD GOOD IN CASE OF IFRS DUE TO FAIR VALUE CONCEPT.
But can it be capitalised?
could any one put more light on the treatment for gifts received
Dear Rameez,
It will definately be capitalized but at a nominal value..
Say Rs. 10, no point in claiming DEPRECIATION I WOULD SAY.
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