Tax and accounting processing of assets that have been taken as a gift

Following entry should be passed:

 

Asset                Dr

To Income a/c

Included with assets worth1 pound does not reckon with depreciation

The Accounting Treatment for such type of Assets can be studied from the International Accounting Standard -20, Govt.
Grants The standard allows either to record the asset at its fair value or at CU01 i.e.
Nominal Value.
Here CU stands for Currency Unit