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Fixed assets recognition

SUYASH KORDE (Student) (136 Points)

18 March 2016

Is web cam purchase be form part of fixed assets?? web cam cost Rs.3900/-

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5 Replies

Amit Kanunga (Article Assistant and Post Gradute) (644 Points)
Replied 18 March 2016

As per provision below Rs. 5,000 is to be expense out but web cam can be used for more than 1 years so we can either considered as fixed asset also or we can expenses out.

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Sandeep Garg (Consolidation and IndAS Application) (1056 Points)
Replied 18 March 2016

considering the materiality, 100% depreciation can be charged in the same year.

CA Neha Gupta (Managing Partner LNG & Associates) (1839 Points)
Replied 18 March 2016

The amount is not so material as far as Fixed assets recognition is concerned. It is better to write off the entire expense in the current year.

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 18 March 2016

Webcam is used for more than 1 year so it can be considered as fixed assets. At the same time amount of it is less tthan 5000 so it can be expensed out. It depends on nature of your business or turnover that whether it is to capitalized or charge as revenue exp

Ravi Jadhav (Account Executive) (30 Points)
Replied 20 March 2016

It should be chared to revenue exp. in materiality concept & its a part of Personal Computer & it will not identify during physical verification after some year. Or It all about Company Policy.