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Asset ownership

kushal (student) (29 Points)

03 August 2015

if assets are kept with an entity but has no legal right over it. Then asset is to be shown in books of accounts of entity or not

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Ankiit Gupta (Audit Article) (28 Points)
Replied 03 August 2015

Theoritically, if you don't have Ownership of any Asset, you doesnot Disclose it in Books of Accounts.

But practically, it is advisable to disclose such assets and items in Stock of invetory with corrosponding value shown as 0 (i.e NIL), and proper disclose of the Same has to be given in Notes to accounts.