04 June 2012
TTD, Tirupati has lots of gardens in which flowers are grown and sent to Lord Balaji for daily rituals. No other sale is made out of that garden. Garden dept in TTD is a cost centre.
Now when new plants are planted in those gardens..what is the nature of expenditure? Whether it falls in capital or revenue?
What more types of expenditure will be of capital nature that can be used in gardens?
Please clarify in relevance to accounting standards.
06 June 2012
Sir Thankyou for reply But there is IAS 41 for accounting Agriculture activity. Even though IAS 41 is not yet applicable in India can we rely on those principles laid in IAS 41. Will the plantation in gardens fall within scope of IAS 41?