Sandeep Ahuja & Co.

Established in the year 1986, we are a leading chartered accountancy firm based in Delhi & NCR rendering comprehensive professional services which include statutory audit, internal audit, direct tax, transfer pricing, GST, bank audit, propriety audit, cost accounting, internal financial controls and risk advisory.

Friday, July 14, 2017

ICDS 5 vs. AS 10

The corresponding AS to ICDS 5 'Tangibe Fixed Assets' is AS 10 'Accounting for Fixed Assets'.

Point of Difference

Basis
AS - 10
ICDS - 5
Applicability

Applies to tangible fixed assets and goodwill. Applies only to tangible fixed assets.
Revenue non monetary item Machinery spares - charged to P&L
For specific asset - capitalised
Machinery spares capitalised only when it can be used only with an item of tangible fixed asset and their use is expected to be irregular.
Asset acquired against non monetary consideration

Cost of acquired asset - FMV or NRV of asset given up adjusted for any balancing payment or receipt of cash or other consideration.Actual cost of asset acquired - its fair value
Fixed asset acquired in exchange of shares Cost of asset - FMV of asset OR
FMV of securities issued,
whichever is more clearly evident.
Actual cost of asset acquired - its fair value
Assets acquired for a consolidated price

When several assets are acquired at consolidated prices, the consideration is apportioned on fair basis as determined by competant valuers. When several assets are acquired at consolidated prices, the consideration is apportioned on fair basis.

No comments:

Post a Comment