252as10new - Accounting Standard (AS) 10 (issued 1985)...

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Unformatted text preview: Accounting Standard (AS) 10 (issued 1985) Accounting for Fixed Assets Contents 141 INTRODUCTION Paragraphs 1-6 Definitions 6 EXPLANATION 7-17 Identification of Fixed Assets 8 Components of Cost 9 Self-constructed Fixed Assets 10 Non-monetary Consideration 11 Improvements and Repairs 12 Amount Substituted for Historical Cost 13 Retirements and Disposals 14 Valuation of Fixed Assets in Special Cases 15 Fixed Assets of Special Types 16 Disclosure 17 ACCOUNTING STANDARD 18-39 Disclosure 39 The following Accounting Standards Interpretation (ASI) relates to AS 10: ASI 2 - Accounting for Machinery Spares The above Interpretation is published elsewhere in this Compendium. 1324 AS 10 (issued 1985) Accounting Standard (AS) 10 (issued 1985) Accounting for Fixed Assets (This Accounting Standard includes paragraphs 18-39 set in bold italic type and paragraphs 1-17 set in 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 Preface to the Statements of Accounting Standards 1 .) The following is the text of the Accounting Standard (AS) 10 issued by the Institute of Chartered Accountants of India on ‘Accountin g for Fixed Assets’. In the initial years, this accounting standard will be recommendatory in character. During this period, this standard is recommended for use by companies listed on a recognised stock exchange and other large commercial, industrial and business enterprises in the public and private sectors. 2 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 statement deals with accounting for such fixed assets except as described in paragraphs 2 to 5 below. 3 1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 2 It may be noted that this Accounting Standard is now mandatory. Reference may be made to the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India’ appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard. 3 From the date of Accounting Standard (AS) 26, Intangible Assets, becoming mandatory for the concerned enterprises, the relevant paragraphs of this Standard that deal with patents and know-how, stand withdrawn and, therefore, the same are omitted from this standard. Accounting for Fixed Assets 143 2. This statement does not deal with the speed 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...
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This note was uploaded on 12/07/2011 for the course MBA 0001 taught by Professor Akshat during the Spring '09 term at Institute of Management Technology.

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252as10new - Accounting Standard (AS) 10 (issued 1985)...

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