Forums
Back
Notional expense or Loss
Accountancy
Is depreciation a notional expense?And Loss on sale of fixed asset is notional loss or not.if not, What should we call it.?
Answers (4)
ruchi lahoti
Notional means, based on a suggestion, estimate, or theory; not existing in reality. Hence, Depreciation is not a notional expense neither Loss on sale of asset is notional loss. Loss on sale of asset is a actual loss and recognised as expense in P&L.
From here that doubt arises..Could you explain this statement or can you say this is wrong.
