I have one quary i.e
any assets forgot to record in BS of previous year(last year) and we want to show it in current year.then is correct to show it in balance sheet after deducting the depreciation of the last year.
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Last year assets treatment
Replies (3)
Yes you can show it in balance sheet
in current balance sheet you bring the asset value by deducting the previous depreciation
means if asset is 1000 in privious
depreciation is 100 in previous
then current year asset value is 1000 minus 100
then again in current year you deprecated it as per rule
in current balance sheet you bring the asset value by deducting the previous depreciation
means if asset is 1000 in privious
depreciation is 100 in previous
then current year asset value is 1000 minus 100
then again in current year you deprecated it as per rule
Yes have to deduct deprecation last year then this year on wdv
There is one accounting standard called PRIOR PERIOD ADJUSTMENT .
ACCOUNTING STANDARD 5 PROVIDES PROSPECTIVE CORRECTION OF PRIOR PERIOD ERROR AND OMISSIONS IN THE CURRENT YEARS PROFIT AND LOSS ACCOUNT AND REQUIRES DISCLOSURE OF NATURE AND AMOUNT OF PRIOR PERIOD ITEM ITEM IN SUCH MANNER.
THE IMPACT OF PROFIT LOSS CAN BE PERCEIVED.
PREVIOUSLY IT WAS ACCOUNTING STANDARD 5 NOW IT HAS BEEN CHANGED ACCORDINGLY.
ACCOUNTING STANDARD 5 PROVIDES PROSPECTIVE CORRECTION OF PRIOR PERIOD ERROR AND OMISSIONS IN THE CURRENT YEARS PROFIT AND LOSS ACCOUNT AND REQUIRES DISCLOSURE OF NATURE AND AMOUNT OF PRIOR PERIOD ITEM ITEM IN SUCH MANNER.
THE IMPACT OF PROFIT LOSS CAN BE PERCEIVED.
PREVIOUSLY IT WAS ACCOUNTING STANDARD 5 NOW IT HAS BEEN CHANGED ACCORDINGLY.
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