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Tax and accounting processing of assets that have been taken as a gift

Accounting
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Question added by Haitham Galal , Supervisor Accountant , Eshak Group For Real Estate and Tourism Development
Date Posted: 2013/06/12
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Jijumon James
by Jijumon James , SENIOR ACCOUNTANT , BADR AL SAMAA HOSPITAL

Following entry should be passed:

 

Asset                Dr

To Income a/c

Abdallah Ahmed Abdallah
by Abdallah Ahmed Abdallah , chief accountant , Dukes

Included with assets worth1 pound does not reckon with depreciation

Muhammad Arshad Kadhar
by Muhammad Arshad Kadhar , Head of Internal Audit (Sr. Manager) , National Testing Service Pakistan

The Accounting Treatment for such type of Assets can be studied from the International Accounting Standard -20, Govt.
Grants The standard allows either to record the asset at its fair value or at CU01 i.e.
Nominal Value.
Here CU stands for Currency Unit

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