Dear Friends,
Please let us know when the company owns a mobile instrument, such as a BlackBerry or similar device, where the cost of the instrument exceeds Rs. 5000.
As per normal policy, it should be capitalized. However, considering the challenge of tracking and the materiality of items in value compared to the total fixed assets, it is not feasible to monitor all of this.
Please suggest and provide any necessary references to applicable Accounting Standards if needed.
Thanks,
Dinesh
From India, Thana
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1Please let us know when the company owns a mobile instrument, such as a BlackBerry or similar device, where the cost of the instrument exceeds Rs. 5000.
As per normal policy, it should be capitalized. However, considering the challenge of tracking and the materiality of items in value compared to the total fixed assets, it is not feasible to monitor all of this.
Please suggest and provide any necessary references to applicable Accounting Standards if needed.
Thanks,
Dinesh
From India, Thana
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Dinesh, It should be capatilised and do not charge to P&L A/c. Please refere AS10 on Accounting for Fixed Assets.
From India, Jaipur
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From India, Jaipur
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Hi Anurag,
Please find attached the policy herewith, which includes references from AS-10, AS-6, and Schedule XIV of the Companies Act.
Upon overall review, it appears that the company's management has the authority to decide on charging it off, and the responsibility lies with the company's management to substantiate the materiality concept in this regard.
I have also learned from friends that many companies charge it off to the P&L if their balance sheet size is large.
Thank you.
From India, Thana
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Please find attached the policy herewith, which includes references from AS-10, AS-6, and Schedule XIV of the Companies Act.
Upon overall review, it appears that the company's management has the authority to decide on charging it off, and the responsibility lies with the company's management to substantiate the materiality concept in this regard.
I have also learned from friends that many companies charge it off to the P&L if their balance sheet size is large.
Thank you.
From India, Thana
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ACCOUNTING STANDARDs FOR GRATUITY ACCOUNTING ON ACTUARIAL BASIS.docx
E compliance.pdf