13 April 2010
Well i think it cannot be a part of stock in trade as its not a stock* raw material, FG or wip of the company. Also it is not a part of current assets. You can show it in fixed assets only and do not charge depreciation. In a separate block of assets you can include it.
13 April 2010
Ya you can charge it. but if you specially mentioning it in block of assets held for sale than you cannot charge dereciation. its not used by the assesee.. SO for that you have to treat as a regular asset....
14 April 2010
It will remain under the head fixed assets only. however, it will be valued at lower of WDV or NRV and the Loss, if any, will be charged to P/L A/c as required by AS 10. It can never be shown as stock as stock means the goods in which a company deals. Further, the valuation criteria remains the same until that fixed asset is sold out. there is no question of dep. due to valuation mentioned above in ACCOUNTS AS WHEN IT IS HELD FOR SALE, IT LOSES THE CHARACTERISTIC OF BEING A FIXED ASSET. Entry for removal will be passed only when it is actually sold out. In case u have any further doubt, revert back to me. Regards, CA Shakuntala Chhangani
CAclubindia
