Hi friends
i need a small clarification....
who has to claim Depreciation on HP of plant and machinery? Hirer or hirer vendor
Thanks.....
PadmaRanganathan (Article Trainee) (34 Points)
11 June 2008Hi friends
i need a small clarification....
who has to claim Depreciation on HP of plant and machinery? Hirer or hirer vendor
Thanks.....
Rupesh Maheshwari
(ACA, Dip. IFR (ACCA))
(6166 Points)
Replied 11 June 2008
As the sole intend of the hire purchaser is to pay off the instalments and become the final owner of the asset, it is his moral duty to provide for depreciation in his books
Rupesh
CA Amit Prakash Sharma
(Chartered Accountant)
(92 Points)
Replied 11 June 2008
As per the accounting standard 1 - Disclosure of Accounting policies the materiality should be consdier before accounting any transaction.
Therefore as per materiality concept of accounting it is material the assets will be used by the hire purchaser and hire purchaser should be record hire assests at the cash value.
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