A PROJECT

ON

ACCOUNTING
STANDARDS
AS-10,as-26

AS-10: ACCOUNTING FOR FIXED

ASSETS

OBJECTIVE AND SCOPE OF AS-10

Fixed Assets often comprise a significant portion of the total assets of an

enterprise, and therefore are important in the presentation of financial position.
Furthermore, the determination of whether expenditure represents an assets or
an expense can have a material effect on an enterprise’s reported results of
operations. This standard is mandatory in nature. The provisions relating to
borrowing costs, intangible assets and leases that were originally contained in
this standard were withdrawn once new accounting standards were developed in
these areas. This statement does not deal with accounting for the following
items to which special consideration apply;
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  Forests, plantations and similar regenerative natural resources;
 Wasting assets including mineral rights, expenditure on exploration for
and extraction of minerals, oil, natural gas and similar non-regenerative
resources;
 Expenditure on real estate development; and
 Livestock

Expenditure on individual items of fixed assets used to develop or maintain the

activities covered in (i) to (iv) above, but separable from those activities, are to
be accounted for in accordance with this statement.

WHAT ARE FIXED ASSETS?

Fixed asset is an asset held with the intention of being used for the purpose of
producing or providing goods or services and is not held for sale in the normal
course of business. This statement deals with accounting for fixed assets such as
land, buildings, plant and machinery, vehicles, furniture and fittings, goodwill,
patens, trademarks and designs. This statement however does not deal with
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 bases. It may be appropriate to
aggregate individually insignificant items, such as moulds, tools and dies, and to
apply the criteria to the aggregate value.

ACCOUNTING FOR MACHINERY SPARES

The accounting of machinery spares is done in accordance with this statement

and not in accordance with AS-2 on ‘Inventories”. Stand-by equipment and
servicing equipment are normally capitalized. Machinery spares are usually

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charged to the profit and loss statement as and when consumed. However, if
such spares can be used only in connection with an item of fixed asset and their
use is expected to be irregular, it may be appropriate to allocate the total cost on
a systematic basis over a period not exceeding the useful life of the principal
item.
In certain circumstances, the accounting for an item of fixed asset may be
improved if the total expenditure thereon is allocated to its component parts,
provided they are in practice separable, and estimates are made of the useful
lives of these components. For example, rather than treat an aircraft and its
engines as one unit, it may be better to treat the engines as a separate unit if it is
likely that their useful life is shorter than that of the aircraft as a whole

COMPONENTS OF COSTS OF FIXED ASSETS

The cost of an item of fixed asset comprise its purchase price, including import
duties and other non-refundable taxes or levies and any directly attributable cost
of bringing the asset to its working condition for its intended use; any trade
discounts and rebates are deducted in arriving at the purchase price. MODVAT
credit can be considered to be of the nature of a refundable tax. Therefore,
MODVAT credit should be reduced from the purchase cost of capital goods
concerned. Examples of directly attributable cost are
 Sites preparation;
 Initial delivery and handling costs;
 Installation costs, such as special foundation for plant; and
 Professional fees, for example fees of architects and engineers.
 The cost of a fixed asset may undergo changes subsequent to its
acquisition or construction on account of exchange fluctuations, price
adjustments, change in duties of similar factors.

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Administration and other general overhead expenses are usually excluded from
the cost of fixed assets because they do not relate to a specific fixed asset.
However, in some circumstances, such expenses as are specifically attributable
to construction of a project or to the acquisition of a fixed asset or bringing it to
its working condition, may be included as part of the cost of the construction
project or as a part of the cost of the fixed asset.
The expenditure incurred on start-up and commissioning of the project,
including the expenditure incurred on test runs and experimental production is
usually capitalized as an indirect element of the construction cost. However, the
expenditure incurred after the plant has begun commercial production, i.e.
production intended for sale or captive consumptions, is not capitalised and is
treated as revenue expenditure even though the contract may stipulate that the
plant will not be finally taken over until after the satisfactory completion of the
guarantee period.
Amount paid for know-how for the plans, layout and designs of buildings
and/or design of the machinery should be capitalised under the relevant asset
heads such as buildings, plants and machinery, etc. Depreciation should be
calculated on the total cost of those assets, including the cost of the know-how
capitalised. Know-how related to the manufacturing process is usually expensed
in the year in which it is incurred. Where the amount paid for know-how is a
composite sum in respect of both the manufacturing process as well as plans,
drawings and designs for buildings, plant and machinery, etc., the management
should apportion such consideration into two parts on a reasonable bases. If the
said costs are not directly attributable to bringing the assets concerned to their
working condition for their intended use, it should not be capitalised as part of
the cost the asset.

SELF-CONSTRUCTED FIXED ASSETS

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In arriving at the gross book value of self-constructed fixed assets, the above
principles apply. Included in the gross book value are costs of construction that
relate directly to the specific asset and costs that are attributable to the
construction activity in general and can be allocated to the specific asset. Any
internal profits are eliminated in arriving at such costs.

ACCOUNTING OF COST INCURRED DURING PROJECT DELAYS

AND WASTAGES

If the interval between the date a project is ready to commence commercial

production and the date at which commercial production actually begins is
prolonged, all expenses (other than borrowing costs) incurred during this period
are charged to the profit and loss statement. However, the expenditure incurred
during this period is also sometimes treated as deferred revenue expenditure to
be amortised over a period not exceeding to 3 to 5 years after the
commencement of commercial production.
Normal wastages are capitalised. Abnormal wastages are not capitalised but
charged to the profit and loss account.

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NON MONETARY CONSIDERATION FOR FIXED ASSETS:

When a fixed asset is acquired in exchange for another asset, its cost is usually
determined by reference to the fair market value of the consideration given. Fair
market value is the price that would be agreed to in an open and unrestricted
market between knowledgeable and willing parties dealing at arm’s length who
are fully informed and are not under any compulsion to transact. It may be
appropriate to consider also the fair market value of the asset acquired if this is
more clearly evident. An alternative accounting treatment that is sometimes
used for an exchange of assets, particularly when the assets exchanges are
similar, is to record the asset acquired at eh net book value of the asset given up
in each case; an adjustment is made for any balancing receipt or payment of
cash or other consideration. When a fixed asset is acquired in exchange for
share or other securities in the enterprise, it is usually recorded at its fair market
value, or the fair market value of the securities issued, whichever is more
clearly evident.

SUBSEQUENT EXPENDITURE INCURRED ON FIXED ASSETS

AFTER INITIAL CAPITALISATION ACCOUNTED

Frequently, it is difficult to determine whether subsequent expenditure related to

fixed asset represents improvements that ought to be added to the gross book
value or repair 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.g., an increase in capacity or structural alteration to a building that
increases the strength of the building beyond its original strength. Examples of
improvements which result in increased future economic benefits include:

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  Modification of an item of plant to extend its useful life, including an
increase in its capacity;
 Upgrading machine parts to achieve a substantial improvement in the
quality of output; and
 Adoption of new production processes enabling a substantial
reduction in previously assessed operating costs

While deciding whether subsequent expenditure resulted in an increase in the

future benefits from the asset or not, recognition should be given both to the
increase in the benefits ‘per annum’ as well as increase in benefits through
extension of the life of the asset. Thus, even if there was no increase in the
annual capacity, but the life of the asset was substantially increased, it would be
taken as an increase in the future benefits from the concerned asset beyond its
previously assessed standard of performance. The expenditure on regular
overhauling only results in maintaining the previously estimated standard of
performance and it does not have the effect of improving the previously
assessed of performance. Lets consider an example, where a land right is in
dispute when it was acquired by an enterprise. The enterprise subsequently
incurred legal expenses and got all the land rights transferred in its favour. This
expenditure should be capitalised because it increases the value of the land
beyond its original assessed standard of performance. Lets consider another
example. An enterprise purchases a land on which there is not dispute.
Subsequent to the acquisition there is encroachment of land. The enterprise
incurs legal expenses to vacate the encroachers. This expenditure cannot be
capitalised because it does not increase the value of the land beyond its original
assessed standard of performance.
The cost of an addition or extension to an existing asset which is of a capital
nature and which becomes an integral part of the existing asset is usually added
to its gross books value.

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Expenditure on repairs or maintenance of property, plant and equipment is made
to restore or maintain the future economic benefits that an enterprise can expect
from the originally assessed standard of performance of the asset. As such, it is
usually recognised as an expense when incurred. For example, the cost of
servicing or overhauling plant and equipment is usually an expense since it
restores, rather than increase, the originally assessed standard performance.

BASIS FOR REVALUATION OF FIXED ASSETS AND USE OF

REVALUATION RESERVE FOR DECLARING DIVIDENDS OR
ISSUING BONUS SHARES

Sometimes financial statements that are otherwise prepared on a historical cost

basis include part or all of the fixed assets at a valuation in substitution for
historical costs and depreciation is calculated accordingly. A commonly
accepted and preferred method of restating assets is by appraisal, normally
undertaken by competent valuer’s. Other methods are used are indexation and
reference o the current prices which when applied across checked periodically
by appraisal method. According to Schedule VI of Companies Act, every
balance sheet susbsequent to revaluation shall disclose the increased figure with
the date of increase in place of original cost for all the first 5 years. The fact of
revaluation will be disclosed in all the future balance sheets till such time the
revalued assets appear in the company’s balance sheet.
Revaluation reserve is a reserve that represents the excess of the estimated
replacement cost or estimated market values over the book values thereof. As
the revaluation reserve is a not a realized gain, it is not available for distribution
of dividends or issue of bonus shares , or writing off accumulated losses or
profit and loss debit balance or clearing backlog of depreciation of arrears etc.
SEBI also prohibits use of revaluation reserve for purpose of declaring bonus
shares.
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PRINCIPLES FOR SELECTION OF FIXED ASSETS FOR
REVALUATION

When a fixed asset is revalued in financial statements, an entire class of assets

should be revalued, or the selection of assets for revaluation should be made on
a systematic basis. This basis should be disclosed. Selective revaluation of
assets can lead to unrepresentative amounts being reported in financial
statements. Accordingly, when revaluations do not cover all assets of given
class, it is appropriate that the selection of assets to be made on a systematic
basis. e.g an enterprise may be revalued a whole class of assets within a unit.

ACCOUNTING TREATMENT FOR REVALUATION

It is not appropriate for the revaluation of a class of assets to result in the net
book value of that class being greater than the recoverable amount of the assets
of that class. Therefore revaluation would be restricted to the recoverable
amount of the fixed assets. The revalued amounts of fixed assets are presented
in financial statements either by restating both the gross book value and
accumulated depreciation so as to give a net book value equal to the net
revalued amount or by restating the net book value by adding therein the net
increase on account revaluation. An upward revaluation does not provide a basis
for crediting to the profit and loss statement the accumulated depreciation
existing at the date of revaluation.
As increase in net book value arising on revaluation of fixed assets should
credited directly to owner’s interests under the head of revaluation reserves,
except that, to the extent that such increase is related to and not greater than a
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decrease arising on revaluation previously recorded as a charge to the profit and
loss statement, it may be credited to 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 reserved or utilised, it may be
charged directly to that account.
Depreciation under AS-6 should be provided on the total value of the fixed asset
including the revalued protion. Depreciation on the revalued portion of the fixed
asset can either be charged to the profit and loss account or alternatively
charged to the profit and loss account and at the same time compensated from
the revaluation reserve such that the net charge to the profit and loss account is
nil.
ACCOUNTING OF RETIREMENTS AND DISPOSALS

Fixed asset should be eliminated from the financial statements on disposal or

when no further benefit is expected from its use and disposal. Items of fixed
assets that have been retired from active use and are held for disposal are stated
at the lower of their net book value and realisable value and are shown
separately in the financial statements. Any expected loss is recognized
immediately in the profit and loss statements. In historical cost financial
statements, gains or losses arising on disposal are recognised in the profit and
loss statement. Paragraph 24 of Accounting Standard (AS) 10, ‘Accounting for
Fixed Assets’ states that “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.” The fixed assets which
are retired from active use and dismantled and are not actually sold off, should
be disclosed appropriately at the lower of net realisable value and net book
value in the Schedule of Fixed Assets or on the face of the balance sheet under
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the head Fixed Assets. These items cannot be disclosed under the caption
‘inventories’
On disposal of a previously revalued item of fixed asset, the difference between
net disposal proceeds and the net book value should be charged or credited to
the profit and loss statement except that to the extent that such a loss is related
to an increase which was previously recorded or utilised, it may be charged
directly to that account. The amount standing in revaluation reserve following
the retirement or disposal of an asset which relates to that asset may be
transferred to general reserves.

TREATMENT FOR JOINTLY OWNED FIXED ASSETS

Where an enterprise owns fixed assets jointly with other (otherwise than as a
part in a firm), the extent of its share in such assets, and the proportion in the
original cost, accumulated depreciation and written down values are stated in
the balance sheet. Alternatively, the pro rata cost of such jointly owned assets is
grouped together with similar fully owned assets with an appropriate disclosure
thereof. Details of such jointly owned assets are indicated separately in the fixed
assets register.

AMORTISATION/ DEPRECIATION OF GOODWILL

Goodwill, in general, is recorded in the books only when some consideration in

money or money’s worth has been paid for it. Whenever, a business is acquired
for a price (payable either in cash or in shares or otherwise) which is in excess
of the value of the net assets of the business taken over, the excess is termed as
‘goodwill’. Goodwill arises from business connections, trade name or reputation
of an enterprise or from other intangible benefits enjoyed by an enterprises.
Where several fixed assets are purchased for a consolidated price, the
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consideration should be apportioned to the various assets on a fair basis as
determined by competent value. As a matter of financial prudence, goodwill is
written off over a period of 3-5 years.

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DISCLOSURES OF FIXED ASSETS

In addition to disclosures required to be made under AS-1 and AS-6, further

disclosures under AS-10 are as follows:
(i) Gross and net book values of fixed assets at the beginning and end of an
accounting period showing additions, disposals, acquisitions and other
movements;
(ii) Expenditure incurred on account of fixed assets in the course of
construction or acquisition; and
(iii) Revalued amount substituted for historical costs of fixed assets, the basis
of selection of fixed assets for revaluation, the method adopted to
compute the revalued amount, the nature of any indices used, the year of
any appraisal made, and whether an external valuer was involved, in case
where fixed assets are stated at revalued amounts.

For purposes of Schedule VI, the revalued amounts of each class of fixed assets
are presented in the balance sheet separately, by restating both the gross book
value and accumulated depreciation so as to give a net book value to a new
revalued amount. It is not correct to net off the increase/decrease in net-book
value arising from revaluation of various classes of fixed assets, for example,
machinery and building.

SIGNIFICANT DIFFERENCES BETWEEN AS-10, IAS AND US GAAP

Fixed assets are more elaborately defined under IAS and US GAAP. For
example according to IAS-16, an item of property, plant and equipment should
be recognised as an asset when (a) it is probable that future economic benefits
associated with the asset will flow to the enterprise; and (b) the cost of the asset
to the enterprise can be measured reliably. Though these provision not

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contained in AS-10 it is assumed that they would apply even in the Indian
situation.
US GAAP does not permit revaluation of fixed assets. As regards upward
revaluation of fixed assets, IAS-16 permits it as an alternative treatment.
Revaluation is also permitted under AS-10, such as (a) IAS provides more detail
guidelines than AS-10 on revaluation principles (b) Under IAS-16, revaluations
are required to be done with sufficient regularity such that their carrying amount
do not differ materially from the fair values. There is no such requirement in
AS-10. IAS-16 also states that annual revaluations are important where fixed
asset fair values are subject to significant volatility, otherwise a revaluation
every three or five year is sufficient.

Under AS-10 if the interval between the date a project is ready to commence
commercial production and the date at which commercial production actually
begins is prolonged, all expenses (other than borrowing costs) incurred during
this period are charged to the profit and loss statement. However, the
expenditure incurred during this period is also sometimes treated as deferred
revenue expenditure to be amortised over a period not exceeding 3 to 5 years
after the commencement of commercial production. Under IAS/US GAAP
deferral of expenditure is not permitted, and all expenses incurred in these
circumstances are charged to the profit and loss account.

AS-26: ACCOUNTING FOR

INTANGIBLE ASSETS

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INTANGIBLE ASSETS

Intangible asset is an non-physical non-monetary asset which is held for use In

the production or supply of goods and services, or for rentals to others, etc. AS
26 should be applied by all enterprises in accounting of intangible assets,
except: 1. Intangible assets that are within the scope of another standard
financial assets 2. Rights and expenditure on the exploration for or development
of minerals, oil, natural gas and similar non-regenerative resources 3. Intangible
assets arising in insurance enterprise from contracts with policyholders, 4.
Expenditure in respect of termination benefits.

Recognition and Initial Measurement of an Intangible Assets

It applies when an item meets the criteria of an Intangible asset and it is

probable that the future economic benefits will flow to the enterprise and the
cost of the asset can be measured reliably. These recognition criteria applies to
cost of acquiring and generating an intangible asset internally. Note: If an
intangible asset is acquired separately, that should be measured initially at cost,
which includes purchase price that includes import duty, non-refundable
purchase taxes, after deducting trade discount and related direct cost.   If an
asset is acquired in a business combination, the cost of that asset should be its
fair value at the acquisition date which depends on market expectations. When
the asset is acquired free of charge or for a normal consideration, by way of
government grant, then it is recognized at a nominal value or at the acquisition
cost. The cost of an internally generated intangible asset includes all direct
expenditures related to creating, producing and making the asset ready for its
intended usage from the time it meets the first recognition criteria.

Initial and subsequent expenditure

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Expenditure on an intangible item should be recognized as an expense when it
is incurred, Subsequent expenditure (after purchase or completion of assets)
should be added to the cost of the intangible asset,  when there is a probability
that the expenditure will generate future economic benefits and the expenditure
can be measured reliably.

Amortization Period

Amortization should start when the asset is available for use. The depreciable
amount of an intangible asset should be allocated on the basis of useful life.
This AS adopts a presumption that the useful life of intangible assets does not
exceed ten years. In some cases, it would be longer than ten years.

Retirements and Disposals  

An intangible asset should be derecognized on disposal or when no future

economic benefits are expected from its use, any gain and loss (difference
between the net disposal proceeds and the carrying amount of the asset) arising
should be recognized as income or expenses in statement of P & L.

EXAMPLE

An enterprise incurred costs to develop and produce a software product during

2017-18, as follows

Completion of detailed programme and design   45,000

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 Coding and Testing 30,000

Other coding costs 40,000

Testing costs 10,000

Product masters for training materials 15,000

What amount should be capitalized as software costs, on Balance Sheet date?

ANS: As per AS 26, costs incurred in creating the software product should be
charged to research and development expense when incurred until technological
feasibility/asset recognition criteria has been established, that criteria have been
established   upon completion of detailed programme design or working model.
In this case, 75,000 would be recorded as an expense (45,000 + 30,000). Cost
incurred from the point of technological feasibility/asset recognition criteria
until the time when products costs are incurred are capitalized as software cost
(40,000 + 10,000 + 15,000) = 65000

RESEARCH AND DEVELOPMENT

The financial statements should disclose the aggregate amount of research and
development expenditure recognised as an expense during the period.
Research and development expenditure comprises all expenditure that is
directly attributable to research or development activities or that can be
allocated on a reasonable and consistent basis to such activities

TATA MOTORS

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 NOTES FORMING PART OF FINANCIAL STATEMENTS
1. Significant accounting policies

(a) Basis of preparation

The financial statements of the Company have been prepared under
the historical cost convention on an accrual basis of accounting in
accordance with the Generally Accepted Accounting Principles in India
to comply with the Accounting Standards prescribed under Section 133 of
the Companies Act, 2013 and relevant provisions of the Companies Act,
2013 (“the 2013 Act”).
(b) Use of estimates
The preparation of financial statements requires management to make
judgments, estimates and assumptions, that affect the application of
accounting policies and the reported amounts of assets, liabilities,
income, expenses and disclosures of contingent liabilities at the date of
these financial statements.
Actual results may differ from these estimates. Estimates and
underlying assumptions are reviewed at each balance sheet date.
Revisions to accounting estimates are recognised in the period in which
the estimate is revised and future periods affected.
(c) Revenue recognition
The Company recognises revenues on the sale of products, net of
discounts and sales incentives, when the products are delivered to the
dealer / customer or when delivered to the carrier for export sales, which
is when risks and rewards of ownership pass to the dealer / customer.
Sales include income from services and exchange fluctuations relating
to export receivables. Sales include export and other recurring and non-
recurring incentives from the Government at the national and state levels.
Sale of products is presented gross of excise duty where applicable, and
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 net of other indirect taxes.Revenues are recognised when collectability of
the resulting receivables is reasonably assured.
Dividend from investments is recognized when the right to receive the
payment is established and when no significant uncertainty as to
measurability or collectability exists.
Interest income is recognized on the time basis determined by the
amount outstanding and the rate applicable and where no significant
uncertainty as to measurability or collectability exists.
(d) Depreciation and amortisation
(i) Depreciation is provided on the Straight Line Method (SLM)
over the estimated useful lives of the assets considering the nature,
estimated usage,operating conditions, past history of replacement,
anticipated technological changes, manufacturers warranties and
maintenance support. Taking into account these factors, the Company has
decided to retain the useful life hitherto adopted for various categories of
fixed assets, which are different from those prescribed in Schedule II of
the Act. Estimated useful lives of assets are as follows :

Type of Asset
Estimated useful life
 Leasehold Land
Amortised over the period of the lease
 Buildings, Roads, Bridges and culverts
4 to 60 years
 Plant, machinery and equipment
8 to 20 years
 Computers and other IT assets
4 to 6 years
 Vehicles
4 to 10 years

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  Furniture, fixture and office appliances
5 to 15 years
 Technical Know-how
5 to 6 years
 Computer software
4 years
 Water system and sanitation
20 years
 Assets taken on lease are amortised over the period of lease
10 years

(ii) Product development costs are amortised over a period of upto 120
months for New Generation vehicles and powertrains on the basis of
highe of the volumes between planned and actuals and on a straight line
method over a period of 36 months for Vehicle Variants, Derivatives and
otherRegulatory Projects.
(iii) In respect of assets whose useful life has been revised, the
unamortised depreciable amount has been charged over the revised
remaining useful life.
(iv) Depreciation is not recorded on capital work-in-progress until
construction and installation are complete and asset is ready for its
intended use.
(v) Capital assets, the ownership of which doesn’t vest with the
Company, other than leased assets, are depreciated over the estimated
period of their utility or five years, whichever is less.

(e) Fixed assets

(i) Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation / amortization and accumulated impairment, if
any.

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 (ii) Product development cost incurred on new vehicle platforms,
engines, transmission and new products are recognised as fixed assets,
when feasibility has been established, the Company has committed
technical, financial and other resources to complete the development and
it is probable that the asset will generate probable future benefits.
(iv) Cost includes purchase price, taxes and duties, labour cost and directly
attributable overhead expenditure for self constructed assets incurred up
to the date the asset is ready for its intended use. Borrowing cost
incurred for qualifying assets is capitalised up to the date the asset is
ready for intended use, based on borrowings incurred specifically for
financing the asset or the weighted average rate of all other borrowings,
if no specific borrowings have been incurred for the asset. The cost of
acquisition is further adjusted for exchange differences relating to long
term foreign currency borrowings attributable to the acquisition of
depreciable asset w.e.f. April 1, 2007.
(iv) Tangible assets and Software not exceeding R25,000, and product
development costs relating to minor product enhancements, facelifts and
upgrades, are charged off to the Statement of Profit and Loss as and
when incurred.

INTANGIBLE ASSETS:

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 Particulars Cost as at Additions Deductions
1st April /Adjustments[c] /Adjustments[c]
2015
Technical know-how [Note (b)] 275.81 - -
275.81 - -
Computer software [Note (a)] 473.26 21.11 1.18
439.15 34.11 -
Product development cost [Note (a)] 6614.08 1214.74 -
5052.72 1561.34 -
Total Intangible assets 7363.15 1235.85 1.18
5767.70 1595.15 -

Particulars Cost as at Accumulated Amortisation

31st April amortisation as for the year
2016 on 1st April 2015
Technical know-how [Note (b)] 275.81 71.19 25.81
275.81 45.30 25.81

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Computer software [Note (a)] 493.19 406.01 38.42
473.26 360.30 45.82
Product development cost [Note (a)] 7828.82 3363.22 1079.46
6614.08 2255.03 1108.19
Total Intangible assets 8597.82 3840.42 1143.77
7363.15 2660.63 1179.90

Particulars Deduction / Accumulated Net book

Adjustment amortisation up values as at
for the to 31st March 31st march
year[note(d)] 2016 2016
Technical know-how [Note (b)] - 97.08 178.73
- 71.19 204.62
Computer software [Note (a)] 1.18 443.25 49.94

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 0.11 406.01 67.25
Product development cost [Note (a)] (103.62) 456.30 3282.52
- 3363.22 3250.86
Total Intangible assets (102.44) 5086.63 3511.19
0.11 3840.42 3522.73

Notes :
(a) Internally generated intangible asset
(b) Other than internally generated intangible asset
(c) Additions / adjustments include capitalisation of exchange loss
mainly on product development cost of R28.19 crores (2014-2015 R40.96
crores).
(d) Includes impairment charge of R103.62 crores (2014-15 R Nil).

Expenditure incurred on Research and Development

Particulars 2015-2016(In 2016-2017(In

crores) crores)
Revenue expenditure - charged to statement of 563.11 456.10
profit and loss
Revenue expenditure - capitalised 1573.20 1651.70

Capital expenditure 80.80 96.50

TOTAL 2217.11 2204.30

Bibliography
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  Compendium of Accounting Standards
 ICAI – Institute of Chartered Accountants of India
 Student Guide to Indian Accounting Standard & GAAP
 www.icai.org

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