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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.
Cambodia's' Phnom Penh '(Namnpeh)' is situated on the banks of which river?
Which Article of the Indian Constitution provides for equal opportunity for all citizens in the matter of employment under the state?
In which year were the Banking Ombudsman and the Ombudsman Scheme for Digital Transactions first introduced?
Union Home Minister Amit Shah inaugurated three floating BOPs (border outposts) in the riverine border areas of West Bengal. What are the names of the B...
Who received the World Food Prize 2021, for unlocking the benefits of fish for diet, health and livelihood Across the Global South?
Match the following subject matters with their concerned Articles.
Who is the writer of the book “New-age Technology and Industrial Revolution 4.0” which was launched by the Vice President M Venkaiah Naidu?
On the 73rd celebrations of the Republic day 2022, which tableaux had won the best tableau award in the central ministries and departments category?
The world’s largest camel fair is held in which of the following cities?