15 December 2010
Is the value of an asset (stocks, MF holdings, real estate, agri land, house...etc) shown as market value or cost value, every year on the balance sheet. I mean if one had bought a plot for say 1Lac in 2000, do i need to show the same value in my balance sheet of every year and until i sell it or do i need to update its value every year in my balance sheet. Also for an asset transferred as gift or inheritance, do we show on balance sheet, the cost value at which it was bought by the original buyer or the market value at the time which we got it as gift or inherited. Thanks in advance!
16 December 2010
Assets has to be shown in historical value ( i.e. cost value ) in balance sheet, otherwise revaluation of assets is required for increase / decrease the value of assets.
CAclubindia
