Sage-Tips

Which of the following is an asset under Ind AS 16?

IAS 16 covers all aspects of accounting for property, plant and equipment. This represents the bulk of items which are ‘tangible’ non- current assets. It also covers the accounting for depreciation on property, plant & equipment.

What is PPE as per ind as 16?

16 The cost of an item of property, plant and equipment comprises: (a) its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.

Is as 10 applicable to biological assets?

Application of AS 10 Accordingly, following are the cases where AS 10 is not applicable: Biological Assets like live animals or plants pertaining to agricultural activity other than bearer plants. Has a remote chance of being sold as an agricultural produce except for incidental scrap sales.

What are biological assets as per ind as 41?

Accounting and fair valuation under Ind AS Indian Accounting Standards 41 – Agriculture (Ind AS 41) has introduced the concept of biological assets where a biological asset is defined to be a living animal or plant, and includes produce growing on bearer plants.

What should be verified that PPE is as per AS 10 IND as 16?

The cost of property and P&E should be recognized as an asset only if: (i) it is apparent that the future economic benefits related to such asset would flow to the business; and (ii) the cost of such asset could be reliably measured.

Is Accounting Standard 16 optional?

Accounting Standard 16 prescribes the accounting treatment for borrowing costs. This accounting standard must be applied in accounting for the borrowing cots. Furthermore, AS 16 does not deal with the actual or imputed costs of owner’s equity including preference share capital that is not categorized as a liability.

What are financial assets as per Ind AS?

A financial asset is any asset that is: • cash; • an equity instrument of another entity; • a contractual right: – to receive cash or another financial asset from another entity; or – to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity …

What does Accounting Standard 15 stand for?

For the purpose of AS 15, an employee is defined as an employee who may provide services to an entity on a full-time, part-time, permanent, casual or temporary basis. AS 15 also includes directors and other management personnel under the definition of employees.

Which Ind AS speaks about intangible assets?

Ind AS-38: Intangible Assets. (By incorporating Changes as per Companies (Indian Accounting Standards) Amendments Rules 2021).

Are biological assets current or noncurrent?

Biological assets are generally perishable and are like current assets in the balance sheet.

Which Indian accounting standard is applicable for impairment of assets?

AS – 28
AS – 28 deals with the impairment of assets i.e the carrying amount of the assets should not be more than the recoverable amount of the assets. This calculation has to be done at the end of each financial year.

What are the provisions of PPE under the Indian accounting system?

Under the Indian accounting system, specific provisions are also made for accounting of property, plant and equipment (PPE). These provisions are standardised under the Indian accounting standard 16, more popularly known in its abbreviated form, Ind AS 16.

Is Ind AS 16 applicable to all types of property?

Unless other accounting standards ask for a different treatment, Ind AS 16 is applicable to all property and plant and equipment. This standard is not applicable in the below mentioned cases: Property and plant and equipment classified as held for sale as per Ind AS 105. Biological assets related to agricultural activities, except bearer plants.

Is PPE a tangible or intangible asset?

Answer As per Ind AS 16, PPE is a tangible asset which is held for (intention of usage) producing goods, providing services, rental to others or administration purpose. The main basis for classification is intention of usage of the asset rather than the nature of the entity.

What is ppppe According to IAS 16?

PPE refers to property, plant and equipment, as per Ind As 16. What is depreciation according to IAS 16? Depreciation is defined as ‘the systematic allocation of the depreciable amount of an asset over its useful life’. Was this article useful?