How to zero value asset capitalised received from branch

This query is : Open

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2017 Pl explain with accounting entry,how to Zero value asset capitalised received from one branch.w

Roney

Roney (Expert)
Follow

14 February 2017 Initial recognition of asset should be at cost. Since the cost is Zero recognise the asset at a value of Rupee 1.

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2017 Thanks & what about depriciation

Upgrade to CAclubindia Pro. Subscribe Now!

Roney

Roney (Expert)
Follow

20 February 2017 Depreciation is the systematic allocation of the depreciable amount (cost less residual value) of an asset over its useful life (IAS 16 Para 6 definitions) In this case we don't have a cost to allocate over assets useful life in this case so no charge is made to P&L as depreciation expenses.