Is impariment loss i applicable on land?
This query is : Resolved
27 October 2009
LAND IS A NON DEPRECIABLE ASSETS,
IS IMPAIRMENT LOSS IS APPLICABLE ON LAND OR NOT,
HOW EVER AS-28 IS APLICABLE ON ALL ASSETS,
PLEASE RESOLVE QUERRY AFTER PROPER REASONING ONLY,,
IS IMPAIRMENT LOSS IS APPLICABLE ON LAND OR NOT,
HOW EVER AS-28 IS APLICABLE ON ALL ASSETS,
PLEASE RESOLVE QUERRY AFTER PROPER REASONING ONLY,,
27 October 2009
Para 5
An asset is impaired when the carrying amount of the asset exceeds its recoverable amount.
Para 8
In assessing whether there is any indication that an asset may be impaired, an enterprise should consider, as a minimum, the following indications:
External sources of information:
during the period, an asset’s market value has declined significantly more than would be expected as a result of thepassage of time or normal use.
An asset is impaired when the carrying amount of the asset exceeds its recoverable amount.
Para 8
In assessing whether there is any indication that an asset may be impaired, an enterprise should consider, as a minimum, the following indications:
External sources of information:
during the period, an asset’s market value has declined significantly more than would be expected as a result of thepassage of time or normal use.
27 October 2009
The basic principle is to provide for losses. loss on account of land is also possible and the causes should be looked into carefully as normally fall in land value is temporary.External factors beyond the books of accounts should be considered while provisioning for imnpairment of asset when things look up u can reverse the provision entry as excess provision no longer required.
27 October 2009
Agree with experts, although unusual but if it happens, it should attract AS 28 as all other assets, except specified exclusions ,are covered.Simply because land is not depreciable it not goes out of the scope of AS 28.
27 October 2009
its applicable
28 October 2009
I REALLY THANKS FOR ALL THE EXPERT TO SOLVE MY PROBLEM.
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