A bank owned a building which got captured forcefully by a group of mafia/terrorists and thus even though having a legal title over the building, the bank is not in the position to use or benefit from the building. What will be the accounting in this case? Will the bank de-recognize that building merely on the basis of not having control over it? [dt 2076.09.28]
Since IAS/NAS – 16 provides that PPE is an item [not an asset]. And hence control over an asset is not required to qualify as a PPE.
Is this it?
This topic was modified 10 months ago by Shishir Thapaliya. Reason: added date of query arosen to my mind