Credence Sound & Vision Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention except for studio premises which have been stated at its revaluation cost. The company follows mercantile system of accounting and recognises income and expenditure on accrual basis except those with significant uncertainties.

b) Fixed Assets

Fixed assets (except office & studio premises) are stated at cost along with costs directly attributable to bringing the assets to their present working condition & location.

Studio premises are stated at its revalued cost as per the revaluation carried out on 3rd Aug. 1994.

The company has decided to capitalise assets created in the form of Entertainment software representing serials and scripts as plant by capitalising the direct production cost attributable to the foregoing assets.

c) Work - in- Progress

All expenditure including advances given during the acquisition period are accumulated and sh6wn under this heading until the assets are put to use.

d) Inventories

The company, at present, does not have any inventory.

e) Depreciation

Depreciation on other Fixed Assets has been provided as per SLM as per the rates prescribed by Schedule XIV to the companies Act, 1956 on all the fixed assets. Depreciations on additions made to fixed assets during the year are provided on pro-rata basis from the date of such additions.

Fixed Assets which are capitalised during the year amounting to less than Rs. 5,000/- (Rupees Five Thousand only) are fully depreciated irrespective of the date of their capitalisation.

Depreciation on amount added to studio premises on revaluation is recouped from revaluation reserve to the extent of its balance.