LEVEL 1 ENTERPRISES (LARGE) APPLICABLE w.e.f 1/4/2004 1. ALL LISTED ENTERPRISES 2.ENTERPRISES UNDER PROCESS OF LISTING 3.OTHER ENTERPRISES EXCEEDING TURNOVER RS.50 CRORES 4.FINANCIAL INSTITUTION, BANKS, INSURANCE CO. 5.COMMERCIAL ENTERPRISES HAVING BORROWINGS MORE THAN Rs.10 CRORES.
LEVEL – II ENTERPRISES (MEDIUM) APPLICABLE w e f 01/04/2006 1.TURNOVER (Rs.40LAKHS TO Rs.50CRORES) 2.BORROWINGS (Rs.1CRORE TO Rs.10CRORES) LEVEL – III ENTERPRISES (SMALL) APPLICABLE w e f 01/04/2008 TO ALL REMAINING ENTERPRISES
AS-28 applies to all assets other than following: 1.Inventories(AS-2) 2.Assets arising from construction contract (AS-7) 3.Financial assets/Investments(AS-13) 4.Defered tax assets(AS-22) SCOPE
If it is not possible to estimate cash flow of an individual assets same is grouped under a cash-generating unit to which the asset belongs.
“ A cash generating unit is the smallest identifiable group of assets that generates cash inflow from continuing use that are largely independent of the cash inflow from other assets or group of assets.”
An impairment loss should be recognized against the revaluation reserve, if any, and balance, if any, as an expense in the P/L A/c
2. Impairment loss for a Cash Generating Unit should be allocated in the following order
Goodwill, if any.
Balance, if any, to individual assets in proportion to their carrying cost
3. After the recognition of impairment loss the depreciation charge for the asset should be adjusted in future periods to allocate the asset’s revised carrying amount, less its residual value, on a systematic basis over its remaining useful life
(Only to the extant of impairment loss recognized in earlier years)
2. Notes to Accounts
Fixed assets are valued at their historical cost less depreciation no more required to mention .
Criteria for grouping of assets If an active market exists for the output produced by an asset or group of assets, this asset or group of assets should be identified as a separate cash generating unit, even if some or all the output is used internally. When the outputs are used for captive consumption the sale value of output in an active market should be considered in cash flow. Like wise value of inputs also considered. Common assets on a reasonable and consistent basis.