ACCOUNTING STANDARD FOR FIXED ASSET (AS-10)

FIXED ASSET
It is an asset which is : Held with the intention of being used for the purpose of producing or providing goods or services. Not held for sale in the normal course of business. Expected to be used for more than one accounting period. Examples : Land, Building-freehold, LeaseholdBuilding, Plant & Machinery, Furniture & Fitting.

FIXED ASSETS IN FINANCIAL STATEMENT

Fixed Assets shall be shown in financial statement either at Historical cost or revalued price.

FIXED ASSETS IN FINANCIAL STATEMENT

Historical Cost of acquired fixed assets consist of the following :
Purchase price Import duties and other non refundable taxes Any directly attributable cost of bringing the asset to working condition for its intended use.

Historical Cost of self constructed fixed assets consist of the following

All costs which are directly related to the specific asset All costs that are attributable to the construction activity should be allocated to the specific assets Any internal profit included in the cost should be eliminated.

FIXED ASSETS IN FINANCIAL STATEMENT

When the fixed assets are revalued, these assets are shown at revalued price in financial statement.
Method of presentation of revalued asset in financial statement Maximum amount of revaluation Accounting treatment of revaluation

THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES (AS-11)