This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and accounting for cash flow hedges under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new useful life approach.
This document discusses key changes to depreciation and reporting under the Companies Act 2013. Some important points include:
1) Schedule II provides indicative useful lives for tangible assets and requires residual value to be no more than 5% of original cost. Depreciation must be provided on cost or any other substituted value.
2) Companies are classified as Class I or Class II based on flexibility with useful lives and residual values. Certain disclosures are required if different rates than Schedule II are used.
3) Transitional provisions allow carrying amounts to be depreciated over remaining useful life per Schedule II or recognized in retained earnings if life is nil.
4) Significant changes include component accounting, identification of significant parts
This document provides a summary of recent legal landmarks in taxation. It lists 6 cases from various High Courts and appellate authorities across India. Each case listing includes the authority, relevant section/rule, ratio or key consideration from the case, case citation, and name of the assessee involved. The cases covered rulings on topics like interest income taxation, penalty for change in head of income, use of segmental reports for transfer pricing, stay of tax recovery, classification of rental income, and depreciation allowance.
The document compares accounting standards Ind AS 16 and AS 10 & 6 regarding property, plant, and equipment. Key differences include:
- Ind AS 16 has specific recognition criteria for assets while AS 10 & 6 do not.
- Ind AS 16 requires separate depreciation of major components and capitalizing subsequent expenditures, while AS 10 & 6 do not.
- Ind AS 16 requires costs of dismantling and restoring sites to be included in asset costs, while AS 10 & 6 do not require this.
This document provides a summary of recent legal landmarks across various authorities and courts in India. It lists 6 cases covering topics such as deduction of advances under section 36(1)(vii), disallowance under section 14A, appropriate transfer pricing method under section 92C, deemed dividend under section 2(22), capital gains on conversion of capital asset to stock-in-trade under section 45(2), and stay of demand during an appeal under section 254. Each case provides the citation, authority or court, relevant section/rules, and ratio or key points of the ruling.
This document lists recent legal landmarks from various tax authorities in India. It includes 6 cases:
1. A Delhi High Court case found that payments made by a race club for live telecasts of horse races were not considered royalty and thus no TDS was required.
2. A Karnataka High Court case determined that an accounting system rejected in a subsequent year cannot be grounds for reopening a concluded tax assessment.
3. A Bombay High Court case ruled that if a taxpayer has already paid full tax and some penalty, a tribunal should not require further deposit for a stay.
4. An Amritsar ITAT case found that if notices under sections 142(1) and 143(2
Ias 16 pp&e group 9(layal mahfouz-maryam ezzeddine)Samir Sami
This document provides background information on International Accounting Standard 16 (IAS 16) regarding property, plant, and equipment. It outlines the history and revisions of IAS 16 from 1982 to 2005. It also includes sections on key definitions such as cost, depreciation, fair value, and impairment. The purpose of IAS 16 is to prescribe accounting policies for property, plant, and equipment to help users understand an entity's investment in these assets.
This document discusses key changes to depreciation and reporting under the Companies Act 2013. Some important points include:
1) Schedule II provides indicative useful lives for tangible assets and requires residual value to be no more than 5% of original cost. Depreciation must be provided on cost or any other substituted value.
2) Companies are classified as Class I or Class II based on flexibility with useful lives and residual values. Certain disclosures are required if different rates than Schedule II are used.
3) Transitional provisions allow carrying amounts to be depreciated over remaining useful life per Schedule II or recognized in retained earnings if life is nil.
4) Significant changes include component accounting, identification of significant parts
This document provides a summary of recent legal landmarks in taxation. It lists 6 cases from various High Courts and appellate authorities across India. Each case listing includes the authority, relevant section/rule, ratio or key consideration from the case, case citation, and name of the assessee involved. The cases covered rulings on topics like interest income taxation, penalty for change in head of income, use of segmental reports for transfer pricing, stay of tax recovery, classification of rental income, and depreciation allowance.
The document compares accounting standards Ind AS 16 and AS 10 & 6 regarding property, plant, and equipment. Key differences include:
- Ind AS 16 has specific recognition criteria for assets while AS 10 & 6 do not.
- Ind AS 16 requires separate depreciation of major components and capitalizing subsequent expenditures, while AS 10 & 6 do not.
- Ind AS 16 requires costs of dismantling and restoring sites to be included in asset costs, while AS 10 & 6 do not require this.
This document provides a summary of recent legal landmarks across various authorities and courts in India. It lists 6 cases covering topics such as deduction of advances under section 36(1)(vii), disallowance under section 14A, appropriate transfer pricing method under section 92C, deemed dividend under section 2(22), capital gains on conversion of capital asset to stock-in-trade under section 45(2), and stay of demand during an appeal under section 254. Each case provides the citation, authority or court, relevant section/rules, and ratio or key points of the ruling.
This document lists recent legal landmarks from various tax authorities in India. It includes 6 cases:
1. A Delhi High Court case found that payments made by a race club for live telecasts of horse races were not considered royalty and thus no TDS was required.
2. A Karnataka High Court case determined that an accounting system rejected in a subsequent year cannot be grounds for reopening a concluded tax assessment.
3. A Bombay High Court case ruled that if a taxpayer has already paid full tax and some penalty, a tribunal should not require further deposit for a stay.
4. An Amritsar ITAT case found that if notices under sections 142(1) and 143(2
Ias 16 pp&e group 9(layal mahfouz-maryam ezzeddine)Samir Sami
This document provides background information on International Accounting Standard 16 (IAS 16) regarding property, plant, and equipment. It outlines the history and revisions of IAS 16 from 1982 to 2005. It also includes sections on key definitions such as cost, depreciation, fair value, and impairment. The purpose of IAS 16 is to prescribe accounting policies for property, plant, and equipment to help users understand an entity's investment in these assets.
The document is a Monthly Digest of Case Laws from February 2010 that summarizes 25 tax cases. Some key points include:
1) Advance tax rulings cannot be denied due to pending proceedings under the Companies Act.
2) The Appellate Tribunal cannot examine the validity of a search initiated under section 132(1).
3) The Appellate Tribunal can allow additional legal grounds if leave is obtained and the affected party is heard.
This document provides a summary of recent legal landmarks across various high courts and appellate tribunals in India. It lists 6 cases covering topics like penalty for cash transactions from directors, comparability of entities in transfer pricing assessments, definition of speculative transactions, tax deducted at source on procurement of study data, definition of agricultural land, and meaning of royalties in the India-Thailand tax treaty. Each case cited provides the authority, relevant section/rule, ratio or key consideration from the ruling, and citation details.
This document provides a summary of recent legal landmarks across various jurisdictions in India. It lists 6 cases with details of the authority, section/rules discussed, ratio or key consideration of the case, and citation and name of the assessed party. Some of the key issues addressed include the tax treatment of retention money withheld by an employer, tax deducted at source on payments made abroad, transfer pricing considerations for valid contracts, deemed income from payments made to related parties, the duty of the CIT to consider audit reports, and the opportunity to be heard regarding transfer of assessment to another jurisdiction.
This document provides a summary of recent legal landmarks related to taxation in India. It lists 6 cases by authority, section/rules of relevant law, ratio or key legal principle of the case, citation, and name of party. The first case discusses the determination of net operating profit margin for transfer pricing purposes. The second case concerns the eligibility of a trust for tax exemption where the dominant purpose was benefiting one community. The third case finds that the Settlement Commission cannot order a special audit during settlement proceedings.
This document provides a summary of 32 case laws related to taxation. Some key points include:
1) Advance tax rulings cannot be denied due to pending company law proceedings.
2) The appellate tribunal cannot examine the validity of a search initiated under section 132(1).
3) The appellate tribunal can allow additional legal grounds if leave is obtained and the affected party is given a hearing.
The document defines assets and discusses the accounting standards for reporting non-current tangible assets. It defines assets according to the IASB framework and outlines the key elements of an asset. Assets are categorized as either current or non-current. Non-current assets are defined and discussed in accordance with IAS 16, including initial cost calculation, recognition criteria, and types of costs included. The objectives and requirements of IAS 16 for property, plant, and equipment are summarized.
Investment on Fixed Assets PowerPoint Presentation SlidesSlideTeam
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Investment On Fixed Assets PowerPoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of twenty four slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below. http://bit.ly/381e18A
Depreciation is the allocation of the cost of tangible and intangible assets over their useful lives. There are different methods for calculating depreciation under accounting standards in India (AS-6), US GAAP, and IFRS. Key differences include how revaluations are treated and whether changes in estimates are considered changes in accounting policies. Uniformity in depreciation accounting standards worldwide could improve comparability between companies.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and accounting for cash flow hedges under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new useful life approach.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and accounting for cash flow hedges under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new useful life approach.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation methods under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation policies under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and accounting for cash flow hedges under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new useful life approach.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It outlines 11 major differences between the two standards, including requirements around component accounting, revaluations, periodic review of depreciation methods, and accounting for assets received from customers. The document aims to educate on updating accounting policies and financial reporting practices to comply with Ind AS requirements for property, plant, and equipment.
The document discusses key differences between Indian GAAP and Ind AS accounting standards regarding treatment of property, plant, and equipment. Some major differences include:
- Ind AS requires component accounting for depreciation purposes, while under Indian GAAP it is optional.
- Replacement costs must be capitalized if criteria are met under Ind AS, while Indian GAAP normally expenses them.
- Ind AS requires revaluations of property with sufficient regularity, Indian GAAP allows but does not require revaluations.
- Depreciation methods, useful lives, and residual values must be reassessed annually under Ind AS but not under Indian GAAP.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation methods under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation policies under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation policies under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
The document summarizes key changes introduced by Income Computation and Disclosure Standards (ICDS) relating to accounting treatment of various items for income tax purposes. Some of the major changes discussed are:
1) Not allowing recognition of expected losses or mark-to-market losses unless permitted by ICDS.
2) Revenue from service transactions to be recognized only as per percentage of completion method.
3) Exchange differences on certain revenue/non-monetary items to be recognized based on transaction date exchange rate rather than closing date rate. Exchange differences on capital items to be taxable/deductible.
4) Premium, discount or exchange differences on hedging transactions to be recognized on settlement basis
Dear Colleagues,
Attached below is the analysis of some issues with ICDS, in detail with case studies.
Effects of forward exchange contracts in foreign currency are illustrated with accounting entries.
I hope you would find this useful.
Presentation on Income Computation & Disclosure StandardsNihar Jambusaria
The document provides an overview of Income Computation and Disclosure Standards (ICDS) introduced by the Central Government of India. Some key points:
- ICDS provide standards for computing income chargeable under the heads "profits and gains of business or profession" and "income from other sources".
- 10 ICDS have been notified so far covering topics like valuation of inventories, construction contracts, revenue recognition, tangible fixed assets, etc.
- ICDS will significantly impact the way companies compute taxable income and may lead to differences compared to financial accounting under Indian accounting standards in some cases.
- Detailed discussions are provided on key principles and differences between ICDS and existing accounting standards for various
Samuel J. Jones has over 25 years of experience in customer service, retail management, and administrative roles. He has a proven track record of success in grocery management, customer service, assistant store management, administrative assistance, and loss prevention supervision. Jones is skilled in time management, maintaining excellent customer service, and motivating employees.
The document is a Monthly Digest of Case Laws from February 2010 that summarizes 25 tax cases. Some key points include:
1) Advance tax rulings cannot be denied due to pending proceedings under the Companies Act.
2) The Appellate Tribunal cannot examine the validity of a search initiated under section 132(1).
3) The Appellate Tribunal can allow additional legal grounds if leave is obtained and the affected party is heard.
This document provides a summary of recent legal landmarks across various high courts and appellate tribunals in India. It lists 6 cases covering topics like penalty for cash transactions from directors, comparability of entities in transfer pricing assessments, definition of speculative transactions, tax deducted at source on procurement of study data, definition of agricultural land, and meaning of royalties in the India-Thailand tax treaty. Each case cited provides the authority, relevant section/rule, ratio or key consideration from the ruling, and citation details.
This document provides a summary of recent legal landmarks across various jurisdictions in India. It lists 6 cases with details of the authority, section/rules discussed, ratio or key consideration of the case, and citation and name of the assessed party. Some of the key issues addressed include the tax treatment of retention money withheld by an employer, tax deducted at source on payments made abroad, transfer pricing considerations for valid contracts, deemed income from payments made to related parties, the duty of the CIT to consider audit reports, and the opportunity to be heard regarding transfer of assessment to another jurisdiction.
This document provides a summary of recent legal landmarks related to taxation in India. It lists 6 cases by authority, section/rules of relevant law, ratio or key legal principle of the case, citation, and name of party. The first case discusses the determination of net operating profit margin for transfer pricing purposes. The second case concerns the eligibility of a trust for tax exemption where the dominant purpose was benefiting one community. The third case finds that the Settlement Commission cannot order a special audit during settlement proceedings.
This document provides a summary of 32 case laws related to taxation. Some key points include:
1) Advance tax rulings cannot be denied due to pending company law proceedings.
2) The appellate tribunal cannot examine the validity of a search initiated under section 132(1).
3) The appellate tribunal can allow additional legal grounds if leave is obtained and the affected party is given a hearing.
The document defines assets and discusses the accounting standards for reporting non-current tangible assets. It defines assets according to the IASB framework and outlines the key elements of an asset. Assets are categorized as either current or non-current. Non-current assets are defined and discussed in accordance with IAS 16, including initial cost calculation, recognition criteria, and types of costs included. The objectives and requirements of IAS 16 for property, plant, and equipment are summarized.
Investment on Fixed Assets PowerPoint Presentation SlidesSlideTeam
This complete deck can be used to present to your team. It has PPT slides on various topics highlighting all the core areas of your business needs. This complete deck focuses on Investment On Fixed Assets PowerPoint Presentation Slides and has professionally designed templates with suitable visuals and appropriate content. This deck consists of total of twenty four slides. All the slides are completely customizable for your convenience. You can change the colour, text and font size of these templates. You can add or delete the content if needed. Get access to this professionally designed complete presentation by clicking the download button below. http://bit.ly/381e18A
Depreciation is the allocation of the cost of tangible and intangible assets over their useful lives. There are different methods for calculating depreciation under accounting standards in India (AS-6), US GAAP, and IFRS. Key differences include how revaluations are treated and whether changes in estimates are considered changes in accounting policies. Uniformity in depreciation accounting standards worldwide could improve comparability between companies.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and accounting for cash flow hedges under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new useful life approach.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and accounting for cash flow hedges under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new useful life approach.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation methods under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation policies under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and accounting for cash flow hedges under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new useful life approach.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It outlines 11 major differences between the two standards, including requirements around component accounting, revaluations, periodic review of depreciation methods, and accounting for assets received from customers. The document aims to educate on updating accounting policies and financial reporting practices to comply with Ind AS requirements for property, plant, and equipment.
The document discusses key differences between Indian GAAP and Ind AS accounting standards regarding treatment of property, plant, and equipment. Some major differences include:
- Ind AS requires component accounting for depreciation purposes, while under Indian GAAP it is optional.
- Replacement costs must be capitalized if criteria are met under Ind AS, while Indian GAAP normally expenses them.
- Ind AS requires revaluations of property with sufficient regularity, Indian GAAP allows but does not require revaluations.
- Depreciation methods, useful lives, and residual values must be reassessed annually under Ind AS but not under Indian GAAP.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation methods under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation policies under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
This document discusses key differences between Indian GAAP and Ind AS accounting standards regarding accounting for property, plant, and equipment. It provides an overview of major changes in depreciation methods and useful life calculations between the two standards. Some key differences highlighted include requirements for component accounting, capitalization of replacement costs, treatment of revaluations, and periodic review of depreciation policies under Ind AS. The document also illustrates transitional provisions and calculations for depreciation under the new standards.
The document summarizes key changes introduced by Income Computation and Disclosure Standards (ICDS) relating to accounting treatment of various items for income tax purposes. Some of the major changes discussed are:
1) Not allowing recognition of expected losses or mark-to-market losses unless permitted by ICDS.
2) Revenue from service transactions to be recognized only as per percentage of completion method.
3) Exchange differences on certain revenue/non-monetary items to be recognized based on transaction date exchange rate rather than closing date rate. Exchange differences on capital items to be taxable/deductible.
4) Premium, discount or exchange differences on hedging transactions to be recognized on settlement basis
Dear Colleagues,
Attached below is the analysis of some issues with ICDS, in detail with case studies.
Effects of forward exchange contracts in foreign currency are illustrated with accounting entries.
I hope you would find this useful.
Presentation on Income Computation & Disclosure StandardsNihar Jambusaria
The document provides an overview of Income Computation and Disclosure Standards (ICDS) introduced by the Central Government of India. Some key points:
- ICDS provide standards for computing income chargeable under the heads "profits and gains of business or profession" and "income from other sources".
- 10 ICDS have been notified so far covering topics like valuation of inventories, construction contracts, revenue recognition, tangible fixed assets, etc.
- ICDS will significantly impact the way companies compute taxable income and may lead to differences compared to financial accounting under Indian accounting standards in some cases.
- Detailed discussions are provided on key principles and differences between ICDS and existing accounting standards for various
Samuel J. Jones has over 25 years of experience in customer service, retail management, and administrative roles. He has a proven track record of success in grocery management, customer service, assistant store management, administrative assistance, and loss prevention supervision. Jones is skilled in time management, maintaining excellent customer service, and motivating employees.
Presentation on Income Computation & Disclosure StandardsNihar Jambusaria
The document provides an overview of Income Computation and Disclosure Standards (ICDS) introduced by the Central Government of India. Some key points:
- ICDS provide standards for computing income chargeable under the heads "profits and gains of business or profession" and "income from other sources".
- 10 ICDS have been notified so far covering topics like valuation of inventories, construction contracts, revenue recognition, tangible fixed assets, etc.
- ICDS will significantly impact the way companies compute taxable income and some provisions differ from existing accounting standards. Areas like inventory valuation, treatment of losses, revenue recognition show differences.
- ICDS will apply for income tax purposes and not for maintaining books
José María Velasco Ibarra fue el Presidente de Ecuador en cinco ocasiones y Jefe Supremo en dos. Fue un político, escritor y pensador católico que lideró la escena política ecuatoriana durante gran parte del siglo XX. Sus mayores logros incluyeron establecer la libertad electoral, educativa y religiosa en Ecuador, así como construir carreteras, escuelas, fortalecer a las fuerzas armadas y crear instituciones como el INNFA y la Universidad Católica de Quito.
El documento proporciona instrucciones sobre cómo crear un blog, subir fotos a Flickr, crear diapositivas en SlideShare, y publicar videos en YouTube y en un blog. Explica los pasos para crear una cuenta, configurar un perfil, agregar contenido como entradas de blog, fotos, diapositivas o videos, y vincular ese contenido al blog.
This document provides an overview of depreciation accounting under the Companies Act, 2013 compared to the previous Companies Act, 1956. Some key points:
- Schedule II of the 2013 Act defines useful life and depreciation methods, whereas Schedule XIV of the 1956 Act specified depreciation rates.
- Component accounting is mandatory under the 2013 Act but was optional under the 1956 Act.
- Depreciation of intangible assets like BOT toll road assets is based on revenue amortization.
- Transition rules specify that the carrying amount of assets as of April 1, 2014 will be depreciated over remaining useful life, otherwise transferred to retained earnings.
- Higher depreciation rates can
This document summarizes the key points of the Accounting Standard (AS) 6 on depreciation accounting issued by the Institute of Chartered Accountants of India. It defines depreciation as the wearing out or loss of value of an asset due to use, time, or obsolescence. It outlines factors to consider in determining depreciation such as historical cost, useful life, and residual value of assets. Common depreciation methods like straight-line and reducing balance are discussed. Disclosure requirements for depreciation policies, calculations, and any changes are also covered.
This document discusses 9 issues related to the accounting standard AS 6 on depreciation accounting in India. It addresses questions on which assets depreciation does not apply to, factors considered in computing depreciation, circumstances impacting useful life, requirements for changing depreciation methods, implications of asset revaluation, and more. Key points covered include that depreciation must be provided annually regardless of increased market value, schedules may require higher depreciation rates if useful life is shorter than estimated, and revalued assets require depreciation based on remaining useful life, not scheduled rates.
Ias 16 property plant and equipment-presentationShadabAhmadFaiq
The document discusses the key aspects of IAS 16 Property, Plant and Equipment including:
- The objective is to prescribe the accounting treatment for property, plant and equipment.
- Scope outlines what is excluded like IFRS 5 and IAS 40.
- Definitions for terms like PPE, carrying amount, depreciation.
- Recognition criteria that future benefits are probable and cost can be reliably measured.
- Measurement includes initial cost and subsequent cost model or revaluation model.
- Depreciation is systematically allocated over useful life.
- Impairment is assessed using IAS 36.
- Derecognition occurs from disposal or no future benefits are expected.
Research MemorandumToCEO, CFO, and Controller of XYZ Research .docxdebishakespeare
Research Memorandum
To: CEO, CFO, and Controller of XYZ Research Company, Inc.
From: Nathan Ellery, Research Analyst
Date: August 22, 2013
RE: Accounting for Patents
Facts:
XYZ Research Company, incorporated in 2010, develops new technology for interplanetary exploration. The company holds many patents, and has historically expensed the costs associated with the patents.
Issues:
1. How are patents accounted for according to GAAP?
2. What is impairment testing, and does it apply to the patents held by XYZ Research Company?
3. Can a company capitalize their patents?
4. Are there any unique situations or exclusions for the industry (technology, or interplanetary exploration), in regards to accounting methods?
5. What corrective action, if any, is recommended to correct any misstatements made with regard to their patents?
Authorities on Accounting for Patents (Intangible Assets):
ASC 350-30-45-1 states that at a minimum, all intangible assets shall be aggregated and presented as a separate line item in the statement of financial position. However, that requirement does not preclude presentation of individual intangible assets or classes of intangible assets as separate line items.
ASC 350-30-45-2 states that the amortization expense and impairment losses for intangible assets shall be presented in income statement line items within continuing operations as deemed appropriate for each entity.
ASC 350-30-35-1 states that the accounting for a recognized intangible asset is based on its useful life to the reporting entity. An intangible asset with a finite useful life shall be amortized; an intangible asset with an indefinite useful life shall not be amortized.
ASC 350-30-35-2 states that the useful life of an intangible asset to an entity is the period over which the asset is expected to contribute directly or indirectly to the future cash flows of that entity.
ASC 350-30-35-15 states that if an intangible asset is determined to have an indefinite useful life, it shall not be amortized until its useful life is determined to be no longer indefinite.
ASC 350-30-35-16 states that an entity shall evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life.
ASC 350-30-35-17 states that if an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset shall be tested for impairment in accordance with paragraphs 350-30-35-18 through 35-19. That intangible asset shall then be amortized prospectively over its estimated remaining useful life and accounted for in the same manner as other intangible assets that are subject to amortization.
ASC 350-30-35-18 states that an intangible asset that is not subject to amortization shall be tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely t ...
This document outlines accounting standards regarding depreciation accounting. It defines key terms like depreciation, depreciable assets, useful life, and depreciable amount. It explains that depreciation is based on historical cost, useful life, and residual value. It discusses factors that determine useful life and methods for allocating depreciation over useful life, like the straight-line method. It also covers disclosure requirements and treatment when the depreciation method is changed.
This document outlines accounting standards for depreciation accounting. It defines key terms like depreciation, depreciable assets, useful life, and depreciable amount. It discusses factors that determine depreciation charges like historical cost, useful life, and residual value. Common depreciation methods like straight-line and reducing balance are described. The standard also addresses disclosure requirements and changes to depreciation methods.
Depreciation as per schedule II along with Guidance Note from ICAIDipendra Prasad Poudel
This document provides an overview and guidance on depreciation concepts according to Schedule II, including component accounting. It discusses calculating depreciation for individual components that have different useful lives than the overall asset. Other topics covered include double and triple shift depreciation, amortization of intangible assets, useful life and residual value of assets, and depreciation for continuous process plants. The presentation was created by Dipendra Prasad Poudel.
The document discusses the impact of adopting Indian Accounting Standards (Ind AS) for automobile companies. It covers key areas like revenue recognition, provisions, hedging, securitizations, deferred tax, embedded derivatives, product development costs, and property, plant and equipment. The overview section explains the transition process to Ind AS, including the requirement for an explicit compliance statement, accounting policy choices, and preparation of an opening Ind AS balance sheet. It also discusses exemptions available, such as the use of deemed cost for property valuations and relief from restating cumulative translation differences.
This document discusses various concepts and methods of accounting for depreciation. It begins by defining depreciation as the systematic allocation of the cost of a fixed asset over its useful life. It then explains reasons for depreciation such as wear and tear, effluxion of time, obsolescence, and depletion. The document goes on to distinguish between different types of depreciation such as depreciation, depletion, and amortization. It also distinguishes between the straight-line and written down value depreciation methods. The document concludes by providing examples of calculating depreciation under various methods including straight-line, written down value, annuity, machine hour, production units, and depletion.
This document provides guidance on applying the provisions of Schedule II to the Companies Act 2013 regarding depreciation. Some key points:
- Schedule II replaced Schedule XIV and requires depreciation to be computed based on the useful life of assets as defined in Schedule II.
- Useful life is the period over which an asset is expected to be used, or the number of production units from the asset. Residual value cannot exceed 5% of original cost.
- The transitional provision requires assets' remaining useful life to be used to calculate depreciation from April 1, 2014, or amounts above residual value to be charged to retained earnings.
- Components with different useful lives must be depreciated separately.
The EITF recently reached consensus on issues related to NAV disclosures and dropdown transactions for master limited partnerships. For NAV disclosures, instruments using the practical expedient will be exempt from fair value hierarchy classification and disclosure, but disclosed as a reconciling item. For dropdown transactions, the general partner must retroactively adjust historical earnings per unit to account for the transfer as if it occurred on the earliest date of common control. The EITF also reached consensus-for-exposure drafts on issues related to electricity contracts, prepaid stored-value cards, and employee benefit plan simplification.
Solution Manual Advanced Accounting 9th Edition by Baker Chapter 13Saskia Ahmad
This document provides answers to questions about segment and interim reporting. It discusses the purpose of segment reporting and the criteria for determining reportable segments. It also addresses accounting issues related to interim reporting, including recognizing revenue and expenses, inventory valuation, and allocating costs between interim periods. Matching revenue and expenses, accounting for long-term contracts and other items in interim statements is also examined.
The document provides questions and answers regarding segment and interim reporting requirements. It discusses how companies must determine reportable segments based on certain revenue, profit, and asset tests. It also outlines accounting treatments for revenue, expenses, taxes, and other items for interim financial statements. Companies must follow specific rules for disclosing segment information, foreign operations, significant customers, and accounting changes in interim reports.
The document discusses depreciation, which is the decline in the value of fixed assets over time due to use, age, or obsolescence. Depreciation is accounted for for tax and profit purposes by allocating the cost of the asset over its useful life. It ensures that the costs are matched to the periods that benefit from use of the asset. Common methods to calculate depreciation include straight-line and written down value. The document also discusses the need to create provisions and reserves to cover uncertain costs and retain profits for future needs.
The document discusses depreciation, which is the decline in the value of fixed assets over time due to factors like usage, age, and obsolescence. It notes that depreciation is needed to match expenses to the periods that benefits are derived from assets. Depreciation is calculated based on the cost of the asset, its expected useful life, and estimated salvage value. Common methods to calculate depreciation include straight-line and written down value. The document also distinguishes depreciation from similar concepts like depletion and amortization.
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India Renewables-Eligible Overseas Capital Markets CandidateVarun Sethi
A silent (so far) revolution has been pioneered for Indian renewable companies (RC) which is no less than the fad and hype of the technology sector. RCs need to explore sustainable renewable energy finance with IPOs, innovative structures like Yield Cos (Utility and commercial scale plants) as also investment plans (for residential solar - My power loans)
The presentation essentially summarizes the renewables eco system in India, global solar experiences (US), IFRS/ US GAAP A/C issues for renewables sector, future of solar n grid parity, US IPO concepts n regulatory environment.
A silent (so far) revolution has been pioneered for Indian renewable companies (RC) which is no less than the fad and hype of the technology sector. RCs need to explore sustainable renewable energy finance with IPOs, innovative structures like Yield Cos (Utility and commercial scale plants) as also investment plans (for residential solar - My power loans)
The presentation essentially summarizes the renewables eco system in India, global solar experiences (US), IFRS/ US GAAP A/C issues for renewables sector, future of solar n grid parity, US IPO concepts n regulatory environment.
1. By Nihar Jambusaria
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
VASHI STUDY CIRCLE
July 10, 2015
1
2. Key terms
Depreciation is a measure of the wearing out, consumption or other
loss of value of a depreciable asset arising from;
use,
efflux of time or
obsolescence through technology and market changes.
Questions –
Is depreciation required to be provided for Idle Assets ?
Is depreciation required to be provided on Asset held for Disposal ?
July 10, 2015
2
3. Key terms
Depreciable assets are assets which;
are expected to be used during more than one accounting period;
and
have a limited useful life; and
are held by an enterprise for use in the production or supply of
goods and services, for rental to others, or for administrative
purposes and not for the purpose of sale in the ordinary course of
business.
Questions
Is Goodwill required to be depreciated ? (Para 1 of AS-6) July 10, 2015
3
4. Key terms
Useful life is either
(i) the period over which a depreciable asset is expected to be used
by the enterprise; or
(ii) the number of production or similar units expected to be obtained
from the use of the asset by the enterprise.
Depreciable amount of a depreciable asset is its historical cost, or
other amount substituted for historical cost in the financial statements,
less the estimated residual value.
July 10, 2015
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5. Section 350 and
Schedule XIV red with
AS-6.
Depreciation to be
provided on the basis of
Historic cost, before
declaration of dividend
and managerial
remuneration.
95% of cost to be
depreciated at the
rates specified in
Schedule XIV (SLM or
WDV).
Shift from rate based approach to useful life
approach.
Depreciation to be provided on the
historical cost or amount substituted for the
historical cost.
Schedule II has prescribed indicative useful
lives for certain tangible assets.
The useful life shall not be ordinarily different
from the useful life specified in Part C.
If useful life or residual value adopted is
different than that prescribed in Part C of
Schedule II, the company shall disclose
such difference and provide justification
that is duly supported by technical advice.
The residual value shall not be more than
5% of the original cost of the asset.
1956 2013
July 10, 2015
5
6. Separate rates for
Intangibles,
electricity
companies, etc.
Accounting Standards 26 – Intangible assets will
continue to apply for calculating the
amortisation of Intangible assets, except for
intangible assets created under ‘Build, Operate,
Transfer’ (BOT) or ‘Build, Own, Operate, Transfer’
(BOOT) model or any other form of Public Private
Partnership (PPP) Route.
BOT Assets may use revenue based amortisation
as follows.
o Amortization Rate =
Amortization Amount X 100 / Cost of
Intangible Assets
o Amortization Amount =
Cost of Intangible Asset X Actual Revenue for
the year / Projected Revenue from Intangible
Asset (till the end of the concession period)
1956 2013
July 10, 2015
6
7. Units of
Production
method
prohibited.
Separate rates
specified for
extra shift.
Assets whose
actual cost does
not exceed Rs.
5000 are depre-
ciated at 100%.
Component
approach was
optional.
Company may be able to use Units of
Production method for depreciation.
Separate rates not specified for extra shift.
o Double shift - Increase by 50%
o Triple shift - Increase by 100%
No provision for low value items.
Component approach is mandatory for
financial year commencing on or after 01-
04-2015. Components should be identified
on the transition date. It cannot be
restricted only to new assets acquired on or
after adoption of component approach by
the company.
1956 2013
July 10, 2015
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8. Some significant changes in useful life
Nature of Assets Useful life -
2013
Rate of
depreciation –
1956
Rate
converted to
years – 2013
Difference
Buildings (other than factory
buildings) other than RCC
Frame Structure
30 1.63 61.35 (31.35)
Bridges 30 1.63 61.35 (31.35)
General Plant and Machinery 15 4.75 21.05 (6.05)
Continuous process plant 25 5.28 18.94 6.06
General rate for furniture and
fittings
10 6.33 15.8 (5.8)
Furniture and fittings used in
hotels, etc.
8 9.5 10.52 (2.52)
Electrically operated vehicles 8 7 14.28 (6.28)
Computer 3 16.21 6.17 (3.17)July 10, 2015
8
9. Key updates impacting depreciation
The useful life or residual value of any specific asset, as notified for
accounting purposes by a Regulatory Authority constituted under
an Act of Parliament or by the Central Government shall be applied
in calculating the depreciation to be provided for such asset
irrespective of the requirements of this Schedule.
July 10, 2015
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10. Transitional Provision
From the date this Schedule comes into effect , the treatment for the
carrying amount of the asset as on that date shall be as follows -
In case there is remaining useful life of the asset:
The same shall be depreciated over the remaining useful life as per
this Schedule;
In case the remaining useful life is nil:
Retain the residual value, and balance carrying amount should be
adjusted against the opening balance of retained earnings. (an
option available to charge to P&L also – Notification no.
G.S.R.627(E), 29th August, 2014)
July 10, 2015
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11. Illustration
Name of the
Asset
Date put
to use
Cost Depreci
ation
WDV as
on
31.03.2014
Salvage
Value
No of
years
the
asset is
used
Balance
Useful
Life
Carrying
amount
adjusted
Against
Reserves
Depreciation
for C. Y. on
Residual
Carrying
amount
Plant &
Machinery
01.04.1996 5,00,000 4,51,440 48,560 25,000 18 - 23,560 -
Plant &
Machinery
01.04.2001 10,00,000 6,52,080 3,47,920 50,000 13 2 - 1,48,960
Furniture 01.04.2008 15,00,000 4,06,125 10,93,875 75,000 6 4 - 2,54,719
Computers 01.04.2011 10,00,000 4,61,985 5,38,015 50,000 3 - 4,88,015 -
Server 01.04.2011 10,00,000 4,61,985 5,38,015 50,000 3 3 - 1,62,672
July 10, 2015
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12. To calculate Rate of Depreciation
under WDV Method:
R = (1 - nth root of s/c ) x 100
Where,
R = Rate of Depreciation (in %),
n = Useful life of the asset (in years)
s = Scrap value at the end of useful life of the asset
c = Cost of the asset
July 10, 2015
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14. Major differences – GAAP & Ind AS
Sr.
No.
Particulars Indian GAAP Ind AS
Property, Plant and equipment
1 Initial
Recognition
- deferred
settlement
term
PPE purchased on deferred
settlement terms are not explicitly
dealt with in AS 10. Cost of fixed
assets include purchase price for
deferred payment term unless
interest element is specifically
identified in the arrangement.
Difference between the
purchase price under normal
credit terms and the amount
paid, is recognized as interest
expense over the period of the
financing.
2 Component
Accounting
There is no mandatory requirement
for component accounting in
accounting standards.
Though as per the requirement of
Companies Act, 2013, component
accounting approach has to be
followed with effect from April 1,
2015.
Each major part of an item of
property, plant and equipment,
the cost of which is significant in
relation to the total cost of the
item, has to be depreciated
separately.
July 10, 2015
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15. Major differences – GAAP & Ind AS
Sr.
No.
Particulars Indian GAAP Ind AS
3 Replacement
Costs
Unless the expenditure
incurred increases the
future benefits from the
asset, beyond its original
standard of performance, it
should be expensed.
Replacement cost is capitalized if it meets
the recognition criteria. Carrying amount
of items replaced is derecognized.
4 Revaluations Revaluation is permitted
and there is no stipulation
as to the frequency of
revaluation.
Ind AS 16 requires an entity to choose
either the cost model or the revaluation
model as its accounting policy. If the
company adopts the revaluation model,
revaluations are required to be made with
sufficient regularity to ensure that the
carrying amount does not differ materially
from that which would be determined
using fair value at the end of the reporting
period.
July 10, 2015
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16. Major differences – GAAP & Ind AS
Sr.
No.
Particulars Indian GAAP Ind AS
5 Depreciation Schedule II to the Companies Act,
2013 has provided the limits for
maximum useful life and residual
value for calculating depreciation
on fixed asset. A company may use
different measures, provided
justification for the same is disclosed.
Depreciation is charged
over the estimated
useful life of the asset.
There is no concept of
minimum statutory
depreciation.
6 Periodic
review
There is no specific requirement as to
reassess the depreciation method,
residual value and
useful life at each balance sheet
date.
Depreciation method,
residual value and useful
life are reassessed at
each balance sheet
date.
July 10, 2015
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17. Major differences – GAAP & Ind AS
Sr.
No.
Particulars Indian GAAP Ind AS
7 Change in
method of
depreciation
Considered as change in accounting policy,
the effect of which is quantified and
disclosed. Requires retrospective calculation
of depreciation and adjustment of excess or
deficit in the period of change.
Considered as change
in accounting estimate
and the new method is
applied prospectively.
8 Capitalization
of exchange
differences
recognized in the statement of P&L.
However, an entity has an option to
recognize unrealized exchange differences
on translation of certain long-term monetary
assets/ liabilities directly in equity or as
adjustment to cost of an asset. The amount
so accumulated in equity shall be transferred
to profit or loss over the period of maturity of
such long-term monetary items in an
appropriate manner.
All exchange
differences arising on
translation of foreign
currency transactions
are generally
recognized in profit or
loss unless can be
regarded as borrowing
cost eligible for
capitalisation. July 10, 2015
17
18. Major differences – GAAP & Ind AS
Sr.
No.
Particulars Indian GAAP Ind AS
9 Decomm-
ssioning and
Restoration
(ARO)
No specific guidance.
(Guidance Note on
Accounting for Oil and Gas
Activities contains specific
information relating to such
costs, but limited to the
industry)
Cost of an item of PPE includes the initial
estimates of the cost of dismantling &
removing the item & restoring the site on
which it is located, the obligation of
which an entity incurs either when the
item is acquired or as a consequence of
having used the item during a particular
period for purposes other than to
produce inventories during that period.
10 Cash flow
hedge
There is no specific guidance
on capitalisation on fair value
gains/losses on qualifying cash
flow hedge relating to
purchase of PPE in foreign
currency.
Fair value gains and losses on qualifying
cash flow hedges relating to purchase
of PPE in foreign currency can be
capitalized.
July 10, 2015
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19. Major differences – GAAP & Ind AS
Sr.
No.
Particulars Indian GAAP Ind AS
11 Transfer of
Assets from
Customers :
Recognition
of Asset
Recognition of
asset
No specific
guidance
Recognition of asset
1. When an entity receives an asset from customer, it
should assess whether the transferred item meets the
definition of an asset set out in the framework. If yes,
then the asset would be recognized as PPE as per Ind
AS 16 and measure its cost on initial recognition at its
fair value. The entity will recognize the corresponding
amount as revenue in accordance with Ind AS 18.
2. When the entity receives cash, it should assess
whether the asset to be constructed meets the
definition of the asset. If yes, then it is recognized as
PPE as per Ind AS 16 and revenue is recognized at the
amount of Cash received. July 10, 2015
19