Accounting for Fixed Assets
96
Accounting Standard (AS) 10
Accounting for Fixed Assets
Contents
INTRODUCTION Definitions EXPLANATION Identification of Fixed Assets Components of Cost Self-constructed Fixed Assets Non-monetary Consideration Improvements and Repairs Amount Substituted for Historical Cost Retirements and Disposals Valuation of Fixed Assets in Special Cases Fixed Assets of Special Types Disclosure MAIN PRINCIPLES Disclosure Paragraphs 1-6 6 7-17 8 9 10 11 12 13 14 15 16 17 18-37 37
134 AS 10 (issued 1985)
Accounting Standard (AS) 10 Accounting for Fixed Assets
(This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the General Instructions contained in part A of the Annexure to the Notification.)
Introduction
1. Financial statements disclose certain information relating to fixed assets. In many enterprises these assets are grouped into various categories, such as land, buildings, plant and machinery, vehicles, furniture and fittings, goodwill, patents, trade marks and designs. This standard deals with accounting for such fixed assets except as described in paragraphs 2 to 5 below. 2. This standard does not deal with the specialised aspects of accounting for fixed assets that arise under a comprehensive system reflecting the effects of changing prices but applies to financial statements prepared on historical cost basis. 3. This standard does not deal with accounting for the following items to which special considerations apply: (i) forests, plantations and similar regenerative natural resources; (ii) wasting assets including mineral rights, expenditure on the exploration for and extraction of minerals, oil, natural gas and similar non-regenerative resources; (iii) expenditure on real estate development; and (iv) livestock. Expenditure on individual items of fixed assets used to develop
Accounting Standard (AS) 10
Accounting for Fixed Assets
Contents
INTRODUCTION Definitions EXPLANATION Identification of Fixed Assets Components of Cost Self-constructed Fixed Assets Non-monetary Consideration Improvements and Repairs Amount Substituted for Historical Cost Retirements and Disposals Valuation of Fixed Assets in Special Cases Fixed Assets of Special Types Disclosure MAIN PRINCIPLES Disclosure Paragraphs 1-6 6 7-17 8 9 10 11 12 13 14 15 16 17 18-37 37
134 AS 10 (issued 1985)
Accounting Standard (AS) 10 Accounting for Fixed Assets
(This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the General Instructions contained in part A of the Annexure to the Notification.)
Introduction
1. Financial statements disclose certain information relating to fixed assets. In many enterprises these assets are grouped into various categories, such as land, buildings, plant and machinery, vehicles, furniture and fittings, goodwill, patents, trade marks and designs. This standard deals with accounting for such fixed assets except as described in paragraphs 2 to 5 below. 2. This standard does not deal with the specialised aspects of accounting for fixed assets that arise under a comprehensive system reflecting the effects of changing prices but applies to financial statements prepared on historical cost basis. 3. This standard does not deal with accounting for the following items to which special considerations apply: (i) forests, plantations and similar regenerative natural resources; (ii) wasting assets including mineral rights, expenditure on the exploration for and extraction of minerals, oil, natural gas and similar non-regenerative resources; (iii) expenditure on real estate development; and (iv) livestock. Expenditure on individual items of fixed assets used to develop