Fictitious asset

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2015 Explain fictitious asset.

Arpit Shah

Arpit Shah (Expert)
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13 July 2015 https://www.caclubindia.com/forum/examples-for-fictitious-assets--176852.asp

Arpit Shah

Arpit Shah (Expert)
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13 July 2015 https://www.caclubindia.com/forum/examples-for-fictitious-assets--176852.asp

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CMA Gul S

CMA Gul S (Expert)
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13 July 2015 http://www.accountingcapital.com/assets/fictitious-assets/

CMA Gul S

CMA Gul S (Expert)
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13 July 2015 The best way to understand fictitious assets is to memorize the meaning of the word “fictitious” which means “not true” or “fake”. Fictitious assets are not assets at all however they are shown as assets in the financial statements only for the time being. In fact, they are expenses & losses which for some reason couldn’t be written off during the accounting period of their incidence.

Fictitious assets are written off against the firm’s earnings in more than one accounting period. Basically, they are amortized over a period of time. They are recorded as assets in financial statements only to be written off later.