As an auditor, I would suggest that Company A should recognize the profit of ₹10 lakh immediately. In this scenario, Company A has sold the machinery to Company B for ₹50 lakh, even though the written-down value (WDV) of the machinery was ₹40 lakh. The difference of ₹10 lakh between the selling price and the WDV represents a profit on the sale of the machinery. Since the leaseback arrangement is in the nature of an operating lease, and not a finance lease, Company A should recognize the entire profit of ₹10 lakh immediately at the time of the sale. Operating leases are typically treated as normal rental agreements, and any profit or loss on the sale should be recognized upfront.
The Government of India has recently sanctioned and notified the Scheme for the amalgamation of the Punjab and Maharashtra Co-operative Bank Ltd. (PMC B...
Which act empowered the RBI to issue 'Asset Reconstruction Companies (ARCs)' licenses in India?
In which type of tax is the marginal tax rate higher than the average tax rate?
The Indian government has raised the windfall tax on petroleum crude to _______ per metric ton from zero.
SEBI gave its final Nod to _______for Trading in Electronic Gold Receipt?
Which of the following is a monetary policy tool which allows banks to borrow money through repurchase agreements that is primerily used by the Reserve ...
Who among the following was the first female chairperson of State Bank of India?
Which of the following is not insured by the deposit insurance and credit guarantee corporation (DICGC)?
For grant of Miniratna Category-I status to Central Public Sector Enterprises (CPSEs), the CPSEs have made profit in the last ______ years continuously.
Government of Bombay passed the first State Cooperative Societies Act in which of the following year?
