20 June 2015
Under generally accepted accounting principles (GAAP) we follow 'Historical Cost' a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company.
Hence, we need to go back till date of purchase of the individual asset.
21 June 2015
thank you sir, as per Schedule -II generally useful life of Fixed Assets is not more than 15 years except Building whether it is acceptable go only 15 years back and in case of Building Original cost as on 1st April' 1999 taken as purchase 5 of its taken as Residual value?
22 June 2015
You propose to write off the book value of fixed assets except buildings. Right?
Anyway check the notes and disclosures in financial statements and also your significant accounting policies, where your practice shall not deviate with what you specify in the financial statements.
CAclubindia
