This document provides an analysis of the accounting treatment for the conversion of land from Property, Plant, and Equipment (PPE) to stock-in-trade under the Ind AS framework and its implications under the Income Tax Act. It discusses the recognition of inventory upon reclassification, the treatment of temporary differences between book and tax values, and the impact on deferred tax calculations. Additionally, the document examines relevant provisions of Ind AS 16, Ind AS 2, and Ind AS 12, as well as the requirements under Section 45(2) of the Income Tax Act, offering insights into the financial and tax reporting implications of such conversions.
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