Dear All:
I am working on a certain project where I have to fix entire fixed asset accounting including fixed asset register. In the process I got few interesting issues and would like to have your expert advice on these matters:-
1) My company has good number of "free of cost" assets which they have received from the group companies. So, should it form part of FA register or a detailed list can be separately. In any case we are not going to charge any depreciation on these assets.
2) During physical verification we have found approx. 50-60 items like laptops, desktop etc. about which we do not have any invoices to ascertain there cost, date of purchase etc. So, what should be the treatment of these assets in FAR.
3) What should be the treatment of extended warranty purchase along with the laptops, desktops etc. My opinion is, it should be treated as deferred expenses and charge out over the warranty period which is for 3 years.
CAclubindia
