1. fixed asset supposed to be capitalised in april 2009. but same was overlooked and capitalised in april 2010. now dep for 09-10 should be shown as prior period expense?? i believe yes.
2. advance to suppliers in capital nature i.e for purchase of fixed assets - shown be shown under CWIP i beleive. let me know, urgent.
23 January 2011
I dont get this, if a fixed asset is not capitalised, it needs to be expensed as the impact has to reflect somewhere in the financials. Assuming that the fixed asset amount is lying in CWIP, and capitalisation is overlooked, you are right. It can be capitaliesed now and the depreciation can be shown as prior period expense as per AS 5.
CAclubindia
