TRANSFER WITHOUT FINANCIAL ADJUSTMENTS (TWFA)
1. TWFA means transfer of assets from one Railway of unit to another Railway or unit.
2. No journal entry (JV) is required.
3. No debit is raised or no credit is afforded by the unit or Railway taking over the assets.
4. TWFA is done only through adjusting into the financial books of the two Railways or units by transfer entry.
5. The main object of ‘TWFA’ is to avoid unnecessary adjustments in regular accounts and budgeting.
6. Transfer of assets donot affect the overall position of Railways.
7. The amount of assets as stands in the books of unit or Railway giving away assets is deducted from opening balances and similarly the same amount is added in the opening balances of the unit or Railway taking over assets.
1. TWFA means transfer of assets from one Railway of unit to another Railway or unit.
2. No journal entry (JV) is required.
3. No debit is raised or no credit is afforded by the unit or Railway taking over the assets.
4. TWFA is done only through adjusting into the financial books of the two Railways or units by transfer entry.
5. The main object of ‘TWFA’ is to avoid unnecessary adjustments in regular accounts and budgeting.
6. Transfer of assets donot affect the overall position of Railways.
7. The amount of assets as stands in the books of unit or Railway giving away assets is deducted from opening balances and similarly the same amount is added in the opening balances of the unit or Railway taking over assets.
Very nice. Very comprehensive.
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