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Fixed asset addition

Arpit Jain (CA Final Student) (77 Points)

15 January 2012

Hi All

I have a query related to fixed asset addition which are transfered via Capital Work in Progress.

Please tell me is it required to check FA addition again as we are already doin the same in Capital WIP.

Please respond to my query.

Thanks

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5 Replies

Yogesh Bhandari (CA FINAL Student) (429 Points)
Replied 16 January 2012

yes, it is necessary because somehow some value additions made to FA from WIP stage. Further, the condition of that FA, physical verification is also necessary.

Arpit Jain (CA Final Student) (77 Points)
Replied 16 January 2012

Yogesh....i am not considering the pyhsical verification over here....my ques is simple if we had already done testin in CWIP then why again checking has to be done in FA....??

CA. Urvashi Maharshi (Member since 2008) (627 Points)
Replied 16 January 2012

It dosent matter whether you have checked CWIP previously still you need to check again after its completion as few installations, erection, similar expenses takes place to put the asset in use. Hence, rechecking is required.