19 September 2010
Company engaged in Transmission of Electricity purchases land only for errecting Sub-stations. Land is never purchased for reasale or as investment.
Untill the completion of errection of Sub-station the land is treated as part of Work-in-process and after that whole asstes i.e. Land, Building, Plant etc. are transferred to respective assets groups.
Whether accounting treatment of Land is correct in terms of Accounting Standards ?
CAclubindia
