Please Help: ACCOUNTS
Posted Date : 12-Dec-2013 , 02:34:54 pm | Posted By SHASHI RANJAN
In previous Year purchase a flat and show in the BALANCE SHEET As ASSETS and i want to change its AS INVestment pls suggest me What I do AS per ACCOUNTING STAndard-1 please suggest with what i write inside balance sheet (in previous year no charge depreciation on flat)
Category : Accounts | Answers : 1 | Comments : 1 | Hits : 297
Answers
Answer By: shankygarg
FIRSTLY,FOR GROUPING FLAT IN INVESTMENTS IN LONG TERM INVESTMENTS , IT SHOULD BE NOTED THAT THE FLAT SHOULD NOT BE USED FOR BUSINESS OPERATIONS.
IF IT IS NOT USED FOR OPERATIONS - THEN IT CAN BE CLASSIFIED AS LONG TERM INVESTMENT. AS PER AS-1 , IT WOULD AMOUNT TO CHANGE IN ACCOUNTING POLICY OF VALUATION OF FIXED ASSETS & AFFECTS THE CONSISTENCY PRINCIPAL.SO IT SHOULD BE DISCLOSED IN NOTES TO ACCOUNTS.
IF IT IS NOT USED FOR OPERATIONS - THEN IT CAN BE CLASSIFIED AS LONG TERM INVESTMENT. AS PER AS-1 , IT WOULD AMOUNT TO CHANGE IN ACCOUNTING POLICY OF VALUATION OF FIXED ASSETS & AFFECTS THE CONSISTENCY PRINCIPAL.SO IT SHOULD BE DISCLOSED IN NOTES TO ACCOUNTS.
Comments
SHASHI RANJAN
13-Dec-2013 , 12:32:07 pmif the assets acquired in 2001 and business entity are purchase & sale of properties then answer are same