whether profit or loss from sale of assets is extra ordinary item under AS-5 or not.
Thanks
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 17 January 2011
Yes, It is an extra ordinary item
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 17 January 2011
but AS-5 issued by iCAI contains an example which include sale of assets under ordinary activity. i think this would be consider as incidental activity to furtherance of business .you may also check this in M.P.Vijay kumar book of AS
Thanks
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 17 January 2011
Yes Exactly. A Sale activity undertaken is incidental and therefore comes under Ordinary Activities.
Sonam Bidasaria
(CA)
(770 Points)
Replied 17 January 2011
Profit or loss from sale of asset is not an extra-ordinary activity. Sale of asset is an incidental activity. It is true that this is not extra-ordinary item but still the disclosure regarding the profit/ loss on sale of assets is required in accordance with Para 12 of AS-15, which reads as under:
"When items of income and expense within profit or loss from
ordinary activities are of such size, nature or incidence that their
disclosure is relevant to explain the performance of the enterprise for
the period, the nature and amount of such items should be disclosed
separately."
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 17 January 2011
Profit or loss on sale of asset is comes under ordinary activity
Apportionment of asset is an extra ordinary item
Sorry for saying it wrong in my first post
CA Ashish Bansal
(Manager Finance & Accounts)
(73 Points)
Replied 19 January 2011
its not an extra ordinary item
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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