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Recognition criteria - AS-10
Accountancy
What is future economic benefits in AS-10? Does realising the value of an assets is also future economic benefits?
Answers (10)
Thread Starter
Atharv SankliyaValue of an PPE*
Future Economic benefits means what an entity expects or estimates , the asset may give financial outcome .
Varun Mulay
For example:- Holding of Plant and Machinery by a manufacturer company expects production over useful life of asset.
Does realising of value of an ppe is also an future economic benefits?
An asset give future economic benefits. If an asset is purchased for sale in ordinary course of business - It is called INventory If an asset is purchased for production or supply of goods/services and is expected to be used for more than 1 accounting period - it is PPE.
CA Suraj Lakhotia Admin
An asset give future economic benefits. If an asset is purchased for sale in ordinary course of business - It is called INventory If an asset is purchased for production or supply of goods/services and is expected to be used for more than 1 accounting period - it is PPE.
No sir i am asking whether realising the value of ppe after using it in production and supply is considered as future economic benefits?
Thread Starter
Atharv SankliyaNo sir i am asking whether realising the value of ppe after using it in production and supply is considered as future economic benefits?
Yes. It is also a future economic benefit.
