Description
it's a ppt presentation..which wud prove useful to management students.
Accounting Standard-10 (Fixed Asset)
By: Soni Singh F.Y.MMS (31)
DEFINITION
Fixed Asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business. (It is expected to be used for more than one accounting period.)
ACCOUNTING FOR FIXED ASSET
?When fixed asset is acquired in exchange for another asset, the cost of the asset acquired should be recorded either at, fair market value or at, the net book value of the assets given up. ?Fixed asset acquired in exchange for shares or other securities should be recorded at FMV of assets given up or asset acquired, whichever is more clearly evident. ?When the fixed assets are revalued, these assets are shown at revalued price.
?When a fixed asset is revalued, an entire class of assets should be revalued or selection of assets for revaluation should be made on a systematic basis. That basis must be disclosed. ?Only purchased goodwill should be recorded in books.
Disclosure of Fixed Asset.
?Gross and net book value of fixed assets at the beginning and end of period showing additions and disposals .
?Revalued amounts substituted for historical costs of fixed assets, the method adopted to compute the same and whether an external valuer was involved .
doc_863583791.pptx
it's a ppt presentation..which wud prove useful to management students.
Accounting Standard-10 (Fixed Asset)
By: Soni Singh F.Y.MMS (31)
DEFINITION
Fixed Asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business. (It is expected to be used for more than one accounting period.)
ACCOUNTING FOR FIXED ASSET
?When fixed asset is acquired in exchange for another asset, the cost of the asset acquired should be recorded either at, fair market value or at, the net book value of the assets given up. ?Fixed asset acquired in exchange for shares or other securities should be recorded at FMV of assets given up or asset acquired, whichever is more clearly evident. ?When the fixed assets are revalued, these assets are shown at revalued price.
?When a fixed asset is revalued, an entire class of assets should be revalued or selection of assets for revaluation should be made on a systematic basis. That basis must be disclosed. ?Only purchased goodwill should be recorded in books.
Disclosure of Fixed Asset.
?Gross and net book value of fixed assets at the beginning and end of period showing additions and disposals .
?Revalued amounts substituted for historical costs of fixed assets, the method adopted to compute the same and whether an external valuer was involved .
doc_863583791.pptx