CA Sahil Singla.. (Service Tax ) (3746 Points)
09 July 2011In case of valuation of goodwill in Accounts CA Final, if revalued amount of Current assets like debtors & stock are given then whether these have to be adjusted in Last year profits in order to calculate Future maintainable Profit ?
Parveen SHarma sir has told students to make these adjustment, but in ICAI module there is no such adjustment in profits. In Module Revalued Current assets are adjusted only in Capital Employed
CA AMANPREET SINGH
(Chartered Accountant)
(284 Points)
Replied 09 July 2011
i think Adjustment is required in last of given years. You know we take into account Depreciation on revaluation figure for fixed assets. then why not for Current assets
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 09 July 2011
All adjustment into past profit are made for estimation of future profit.if revaluation in current assets is on account for error in last year booking then adjustment should be made otherwise no.
Because past profit are only used as basis and if some thing is wrong in past profits then it must be rectified.
Thank u.
CAclubindia
