02 January 2013
I just want to ask three questions, regarding the unlisted limited company:-
1) First of all, Whether any antique Sculptures bought for the decoration in the office can be shown under Furniture or not???
2) Secondly, if there is any increase in the market value of that sculptures(shown under Fixed Assets in the books), then can we revalue that asset? If yes, then what is the full procedures of Creating revaluation reserves? 3) And Lastly, What effect would be on the Income Tax, of that revalued asset?
02 January 2013
In my opinion it should not be treated as a Fixed Asset because these sculptures will not provide you with enduring benefits in your business. The main motive and objective of Fixed Asset is lost. It should be charged as a revenue expenditure. Accordingly, points 2 and 3 do not come in picture.
CAclubindia
