neeraj (Assistant accounts manager) (68 Points)
30 December 2009Dear Friends,
Our company received Air Condition(AC) as gift in the couse of normal business . whether it should be capitalised Or Not ?????
If Capitalised , at what value????
Pls. suggest me the accounting entry as well.
Very Very Thanks in advance
Shashi Bhushan
(Learner, Jalandhar)
(996 Points)
Replied 30 December 2009
At Rs. 100. just to show that an asset is existing.
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 30 December 2009
Yes, u've can show it at nominal value of Rs. 100... like ambulances, if donated, are shown by hospitals
Amir
(Learner)
(4016 Points)
Replied 30 December 2009
The above replies are correct as per AS which follows HISTORICAL COST METHOD...
JUST WANT TO ADD THAT THE SAME MIGHT NOT HOLD GOOD IN CASE OF IFRS DUE TO FAIR VALUE CONCEPT.
Rameez
(Article)
(43 Points)
Replied 29 January 2010
But can it be capitalised?
could any one put more light on the treatment for gifts received
Amir
(Learner)
(4016 Points)
Replied 29 January 2010
Dear Rameez,
It will definately be capitalized but at a nominal value..
Say Rs. 10, no point in claiming DEPRECIATION I WOULD SAY.
CAclubindia
