AS 10

Accountancy

If an asset is purchased by a company and the vendor only paid 80% value of the asset and vendor also certified that no any dues from such company. In this case how should a company recognise that 20% value in the books of the company and up to what extent the company has to capitalise such assets?

Gopichand Annamadasu

CA Inter

★ 270

24-Jul-24 11:14

364

Answers (3)

Capitalisation should be done based on the transaction price agreed upon. If 80% is agreed, that should be the value. Initial recognition of PPE should be at Cost only.

CA Suraj Lakhotia

Admin

24-Jul-24 11:23

Will you please elaborate this with an entry and which topic of AS 10 or IND AS 16 it covers

Thread Starter

Gopichand Annamadasu

CA Inter

★ 270

24-Jul-24 11:31

Both Accounting standards prescribe this.

CA Suraj Lakhotia

Admin

24-Jul-24 11:38

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AS 10

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