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Feb 13, 2011 at 02:50 PM

Fixed asset balances.

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Hi,

I am facing one issue where asset balances are now carried forward ie in F.Y 2011 from F.Y 2010. During audit of F.Y 2010 we have come across a entry which is booked to the expense account using internal order which is investment order. Before booking this entry order was settled once but was not closed. This order was settling to building asset.

Now the expense which are booked needs to be capitalized to plant and machinery account. I need guidance on following three questions.

1. Should I reverse that expense that is booked on internal order and book fresh asset. if yes how?For your information iInternal order is not yet settled & closed.

OR

2. Can I change the receiver asset instead of building to plant and machinery if yes how.

3. Can I do above in F.Y 2010 and run depreciation and re carry forward asset and accumulated depreciation balances. If yes how? Will it affect already carry forward balances. what care i will have to take for period opening and closing in assets and FI.

Your help will be appreciated.

Thanks & Regards