A Fixed Asset has been transferred from one Branch to another Branch then in such case: 1. when (date of Tr./date of receiving/date of installation) FA should be capitalized by receiving Branch?
2. Should depreciation be charged during transit period from one Branch to another branch.
24 February 2013
Yes the FA may be Capitalised but for taking depreciation you have to verify whether the same has been already depreciated against the proposed period ? If not then may be the FA depreciated as well as revalued and then Capitalised.
26 February 2013
The transferring branch will also transfer the accumulated depreciation to the receiving branch till the time it was in use with the transferring branch alongwith the cost of assets. Thereby the depreciation chargeability will be reckoned in continuation at transferring end.
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