05 October 2011
As per AS-5 does every activity distinct from ordinary activities should be disclosed as extra ordinary items? E.g gain/loss on sale of fixed assets, rent received on ideal property, interest received on bank.
1. Any items of ordinary activities which are of considerable size & nature and relevant for disclosure to explain the performance of enterprise should be separately disclosed. E.g. Profit on sale of fixed assets, litigation settlements etc.
2. Any activity which is clearly distinct from ordinary activity and doesn't recur so frequently should be disclosed as extra ordinary items. E.g. Loss due Earthquakes, Grants etc.
Thus the examples you have given are part of ordinary activities and classify under Point No. 1
07 October 2011
Mr. expert Nikhil, in which book you have read that gain/loss on sale of fixed assets, rent received on ideal property, interest received on bank etc. is ordinary activities of the business. Can you find any business where they do business of only buying & selling of fixed assets. Be sure before giving any reply to any question on this site.
07 October 2011
Mr. expert Nikhil, in which book you have read that gain/loss on sale of fixed assets, rent received on ideal property, interest received on bank etc. is ordinary activities of the business. Can you find any business where they do business of only buying & selling of fixed assets. Be sure before giving any reply to any question on this site.
07 October 2011
Mr Dhaval first let me say you that you should speak properly in a public forum as people are here to share and gain knowledge and not to speak in a rude manner. Secondly what Mr. Nikhil wrote is absolutely correct gain/loss on selling of fixed asset etc are not extra-ordinary items they are activities of ordinary nature and form an integral part of every business activity.If the size and nature of it are such that it is necessary to disclose it in financial statement seperately then it will be disclosed seperately..
08 October 2011
Mr. Dhaval, If you are asking query you are also requested to rely on the information provided. Information is shared on this site after due research & knowledge. It is advisable to refer AS-5.
Thanks Ms. CA Richa Bothra for your valuable information......
CAclubindia
