1).The
cost of a fixed asset should comprise its purchase price and any attributable
cost of bringing the asset to
its
working condition for its intended use.
2).Self-constructed
asset shall be accounted at cost.
3).In
case of exchange of asset, fair value of asset acquired or the net book value
of asset given up whichever is
more
clearly evident shall be considered.
4).Revaluation
is permitted provided it is done for the entire class of assets. The basis of
revaluation should be
disclosed.
5).Increase
in value on revaluation shall be credited to Revaluation Reserve while the
decrease should be
charged
to Profit and Loss Account.
6).Goodwill
to be accounted only when paid for.
7).Assets
acquired on hire purchase shall be recorded at its fair value.
8).Gross
and net book values at beginning and end of year showing additions, deletions
and other movements is
required
to be disclosed.
10).Assets
should be eliminated from books on disposal or when of no utility value.
11).Profit/loss
on disposal be recognised on disposal to Profit and Loss Account.
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