Ours is pvt Ltd co. The director is entitled to rent free furnished accomodation. Besides rent, there are other costs like repairs, electricity bills, cable TV subscripttion, maintenance charges etc. which are reimbursed to the Director. Furnishings include TV and furniture. What is the accounting treatment to be given to reimbursements for flat, furniture and TV Set. It is understood that perquisite valuation will include 10% value of furniture and TV Set. We are of the view that for the company all the above mentioned items are revenue expenditure and could be reflected under the Accounting Head "Occupancy Costs - Director's Residence"
CAclubindia
