if a company buy fixed asset in exchange of inventory then at which price it is recorded - cost + profit or only at cost?
2 - does it is considered as sale? or just a credit of purchase a/c
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Fixed asset purchased by consideration other than
Replies (7)
At cost
Sir i am asking at which price the purchase (inventory) a/c is to be credited ?
Replacement cost pluss all expenses incurred to put the asset to use.
At invoice value. There is no principle for that.
Who told?
pls understand the accounting standard for fixed assets and then comment.
pls understand the accounting standard for fixed assets and then comment.
Fixed asset should be recorded at price at which stock was recorded. Simple.
@ sabyasachi is correct and im sorry they can be measured at fairvalue or at carrying amount of goods given.. amd this becomes invoice value. I dont know this paet of the principle.
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