Accounting networks and associations Depending on its size, a company may be legally required to have their financial statements audited by a qualified auditor, and audits are usually carried out by accounting firms.
This standard does not deal with accounting for the following items: Forests, plantations and similar regenerative natural resources Wasting assets including mineral rights, Expenditure on the exploration for and extraction of minerals, oil, natural gas and similar non regenerative resources Expenditure on real estate development livestock.
Terms to be understood: Fixed Assets Asset is a source on which the entity has control and ownership. Gross book value Gross book value of a fixed asset is its historical cost or other amount which can be substituted for historical cost in the books of accounts.
Directly attributable costs These are the costs that can be directly allocated to the fixed assets a.
Any trade discounts and rebates are deducted in arriving at the purchas price. Self constructed fixed assets: They are valued like normal fixed assets but any internally generated profit should be eliminated in arriving at the value to be shown in the financial statements.
Frequently, it is very difficult to determine whether subsequent expenditur related to fixed asset represents improvements that ought to be added to the gross book value or repairs that ought to be charged to the profit and loss statement.
Only expenditure that increases the future benefits from the existing asset beyond its previously assessed standard of performance is included in the gross book value, e.
Otherwise they should be booked as expenditure. Accounting for Retirement Benefits Exchange of fixed assets When a fixed asset is acquired in exchange or in part exchange for another asset, the cost of the asset acquired should be recorded either at fair market value or at the net book value of the asset given up,adjusted for any balancing payment or receipt of cash or other consideration.
For these purposes fair market value may be determined by reference either to the asset given up or to the asset acquired,whichever is more clearly evident.
Fixed asset acquired in exchange for shares or other securities in the enterprise should be recorded at itsfair market value, or the fair market value of the securities issued, whichever is more clearly evident.
Retirement and disposal 1. Material items retired from active use and held for disposal should be stated at the lower of their net book value and net realisable value and shown separately in the financial statements. Fixed asset should be eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal 3.
Losses arising from the retirement or gains or losses arising from disposal of fixed asset which is carried at cost should be recognised in the profit and loss statement.
A decrease in net book value arising on revaluation of fixed asset should be charged directly to the profit and loss statement except that to the extent that such a decrease is related to an increase which was previously recorded as a credit to revaluation reserve and which has not been subsequently reversed.Online accounting lessons, tutorials, articles, questions and exercises with solutions.
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The following is the text of the Accounting Standard (AS) 10 issued by the Institute of Chartered Accountants of India on ‘Accounting for Fixed. AS 10 Accounting For Fixed Assets Revised Notes.
In the previous article, we have given the complete details of AS 2 Valuation of Inventory and A.S 6 (Depreciation). Today we are providing the full details of Accounting Standard – 10 revised summary notes.
Illustrations Cost Accounting Standard - Depreciation of Tangible Capital Assets General Illustrations Cost Accounting Standard - Allocation of .
Accounting Standard 10, AS 10 - Accounting for Fixed Assets. Find Complete details for AS 10 (Accounting for Fix Assets).
Here we are providing full details. Feb 08, · Accounting Standard (AS) 10 Accounting for Fixed Assets (This Accounting Standard includes paragraphs set in bold italic type and paragraphs 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 Standards1.).