kanika Seth (Student) (269 Points)
27 February 2016
Madhur Asati
(25 Points)
Replied 27 February 2016
dear kanika,
Cash discount is not deducted because as per AS-10,
"The cost of an item of fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price. Examples of directly attributable costs are: (i) site preparation; (ii) initial delivery and handling costs; (iii) installation cost, such as special foundations for plant; and (iv) professional fees, for example fees of architects and engineers."
CAclubindia
