Hi Sir or Madam
We are preparing financials to produce to bank
in the balance sheet Land value is 10 lacs
however the government value as per valuation certificate is 25 lacs
our proprietor asked us to revise the land value to 25 lacs in tally
is it a correct accounting practice to revise the land value as per valuation certificate
As I have some Idea that the Fixed assets should be carried based on historical cost
Thanks in advance
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Land value - Accounting treatment
Replies (4)
As per my view, its worng.
Any land valuation to be done as per certified valuer.
It's not bad. Land is revalued most of the time.
If your company policy is at cost, then its historical cost.
What happens is financial statements will become big if we follow revaluation brcause land value usually grows
You can maintain as per book value.
If You want more value of the asset then it will through land valuation and keep/submit the valuation report where you need...
No need to increase the land value in books. Bcoz, it is increasing profit value...
Consider the matter with Your Proprietor.
If You want more value of the asset then it will through land valuation and keep/submit the valuation report where you need...
No need to increase the land value in books. Bcoz, it is increasing profit value...
Consider the matter with Your Proprietor.
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