Please help me in this context :
A company has treated Land as Investment in shares by mistake.Now it wants to rectify it by treating it as land.
What would be procedure to change it?i mean whether i have to gives notes to it ?and other thing?
Vineet Agarwal (Chartered Accountant) (87 Points)
21 November 2011Please help me in this context :
A company has treated Land as Investment in shares by mistake.Now it wants to rectify it by treating it as land.
What would be procedure to change it?i mean whether i have to gives notes to it ?and other thing?
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 24 November 2011
You can re-group it by showing it under the ehad Fixed Assets. Also as there is no depreciation applicable to Land, there would not be any issue of adjusting the depreciation for the period the land was purchased & showed as Investments till the date it is shown as a Fixed Asset.
I don't think that u r required to do any legal formalities. however in the Notes to Accounts you can mentione this point. Let's wait for other expert views.
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