We shown some asset under the head "MISC. EXPENDITURE (to the extent not written off) in the balance sheet on asset side however that does not have any value ....called fictitious Assets. Example are same as pointed out by Mr Ashish.
Fictitious assets are those assets which are not tangible in nature & has no value. They are not taken over in the process of M & A. They are loss assets. They are shown on the assets side as they show debit balance. They are like preliminary expenses, P& L a/c (loss) & discount on issue of shares.
Thank u Mr. Phalgun. Well again a doubt is raised in my mind. according to ur explanation "Fictitious assets are those assets which are not tangible in nature & has no value." is............. intangible assets and fictitious assets are same?
Intangible assets & Fictious assets are not one & the same. Intangible assets have value eg like Good will, Copy Rights, patents ....etc. Fictitious assets have no value. Intangible assets worth are taken over in the event of M & A. In the event of internal reconstruction same is written off. AS 26 deals with intangible assets.