has issued 39 Indian Accounting Standards (Ind AS) which have been notified under the Companies (Indian Accounting Standards) Rules, 2015 (‘Ind AS Rules’), of the Companies Act, 2013. However, major spare parts, stand-by equipment and servicing equipment qualify as property, plant and equipment when an entity expects to use them during more than one period." Paragraphs in bold type indicate the main principles.) You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. AS 16: IND AS 23: 1: Qualifying Assets: As per the provision of AS-16, Qualifying Assets may Include Biological Assets because it does not exclude specifically out of coverage. Each part of PPE with a cost which is substantial with respect to the total cost of the PPE should be separately depreciated. It is probable that the future economic benefits associated with the asset will flow to the entity, and. 16. Under IND AS 19 – At the end of every quarter if the books are audited quarterly or on an annual basis Under AS 15 – On an Annual Basis. As per AS 10, the cost of major inspections are usually expensed as and when they’re incurred. Implication. The concept of ‘deemed cost’ as advocated in Ind-AS 101 (First time adoption of Ind-AS), which forms the very substratum of migrating to Ind-AS framework from the AS framework. Gains arising from such derecognition shouldn’t be classified as part of revenue. Efiling Income Tax Returns(ITR) is made easy with ClearTax platform. The Institute of Chartered Accountants of India (ICAI), on 14 August 2017, issued educational material on Ind AS 16, which summarises the key requirements in Ind AS 16 and accounting issues that are expected to arise while implementing Ind AS 16 in the form of Frequently Asked Questions (FAQs). Ind AS 1 paragraph 31 states that a specific disclosure requirement in a standard need not be satisfied if the information is not material, except when required ... 16 1p32 Do not offset assets and liabilities or income and expenses unless required or permitted by an Ind AS. Apart from AS-19 contents Cost includes all costs necessary to bring the asset to working condition for its intended use. objectives •prescribe the accounting treatment for property, plant and equipment •recognition of the assets •determination of their carrying amounts Valuation Interval. The principal issues are the recognition of assets, the determination of their carrying amounts, and the depreciation charges and impairment losses to be recognised in relation to them. Ltd. The carrying amount of items of PPE should be derecognized: (b) When there are no future economic benefits anticipated from the use or disposal of such asset. If an item is revalued, the entire class of assets to which that asset belongs should be revalued. Conversion to Private Limited. The Institute of Chartered Ac­coun­tants of India (ICAI) has issued ed­u­ca­tional material on Indian Accounting Standard (Ind AS) 16 'Property, Plant and Equipment'. The cost of any item of PPE must be recognized as an asset only when: (a) It is apparent that the future economic benefits related to such asset would flow to the business; and, (b) Cost of such asset could be reliably measured, (a) The purchase price, which includes the import duties and any non-refundable taxes on such purchase, after deducting rebates and trade discounts, (b) Costs which are directly attributable to bringing assets to the condition and location essential for it to operate in a manner as intended by the management, (c) Initial estimate of costs of removing and dismantling an item and restoring a site where it is located. 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