Valuation of fixed asset

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MOHIT SHARMA (Querist)
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11 July 2015 I have purchased a fixed asset of Rs.70000 of which Rs.20000 have been paid by HPCL to me for such purchase.
For what value i must record the fixed asset in my books whether full 70000 of 50000

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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11 July 2015 As per Accounting Standard 12- Government Grants, there are two methods. Either of the two you may choose.

1. Reduce the value of grant received from the asset and then show the net amount as the 'value of the asset'. (Value of asset- Rs. 50,000/-.)

Else,

2. Show the amount received on the 'liabilities side' of the balance sheet and write to P&L account over the period of the grant. (Hete, cost of asset- Rs. 70,000) & (Rs. 20,000 as grant received in liabilities side)