IND AS 17 vs AS – 19 Following are the GAAP differences between AS – 19 and IND AS 17. Is to prescribe the accounting treatment for PPE. objectives •prescribe the accounting treatment for property, plant and equipment •recognition of the assets •determination of their carrying amounts Since the start of the pandemic, the state has seen 440,850 total positive cases and 6,781 total deaths. 1. Ind AS 17 contains specific provisions dealing with leases of land and building. After recognizing an asset, PPE should be carried at the cost as reduced by the accumulated depreciation and accumulated impairment losses (if any). This shall be applied to the companies of financial year 2015-16 voluntarily and from 2016-17 on a mandatory basis. Revenue exp. Indian Accounting Standard (Ind AS) 16 Property, Plant and Equipment (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Indian Accounting Standard (Ind AS) 16, Property, Plant and Equipment prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the … 16 years of Indian Ocean tsunami: What India has learnt The Sumatra earthquake and tsunami are considered to be an eye-opener for India as it introduced the Indian … However, such decrease should be debited to other comprehensive income to the extent of credit balances available in revaluation surplus with respect to such similar asset. Objective of Ind AS 16 The objective of Ind AS 16 is to prescribe the accounting treatment for property, plant, and equipment. Held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; Expected to be used during more than one period. 16. Paragraphs in bold type indicate the main principles.) However, companies are getting actuarial valuations on a quarterly basis for Smooth provisioning, Expense budgeting, and legislative requirements Ind AS 16 The cost of an item of PPE shall be recognised as asset, if and only if – it is probable that future economic benefits associated with the item will flow to the entity; and cost of the item can be measured reliably AS 10 Any item which falls under the definition of a fixed asset should be recognised as a Fixed Asset. Revaluation model: The asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent accumulated depreciation and impairment. COVID-19 cover with monthly payments, Ind AS 16 prescribes the accounting treatment for Property and P&E (Plant, and Equipment). Ltd. ClearTax offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. 16 Ind AS 2 Inventories 279 17 Ind AS 7 Statement of Cash Flows 288 18 Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors 296 19 Ind AS 10 Events after the Reporting Period 305 20 Ind AS 11 Construction Contracts 314 21 Ind AS 12 Income Taxes 330 22 Ind AS 16 … And All Theory papers across all levels of CA, CS, and CMA is available Only On Zeroinfy.in Repairs & Maintenance. Ind AS 16 permits two accounting models: Cost model: The asset is carried at cost less accumulated depreciation and impairment. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Sr. No. ClearTax can also help you in getting your business registered for Goods & Services Tax Law. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. As per the provision of IND AS 23. Ind AS 16 Property Plant Equipment is not applicable in the following cases: (i) Property and P&E (Plant & Equipment) which are classified as held for sale as per Ind AS 105 (ii) Biological assets which are related to agricultural activities except bearer plants (iii) The measurement and recognition of exploration and evaluation assets (iv) Mineral ri… As per AS 10, the cost of major inspections are usually expensed as and when they’re incurred. The ed­u­ca­tional material contains a summary of Ind AS 16 dis­cussing the key re­quire­ments of the Standard and fre­quently asked questions covering the issues. The Institute of Chartered Ac­coun­tants of India (ICAI) has issued ed­u­ca­tional material on Indian Accounting Standard (Ind AS) 16 'Property, Plant and Equipment'. As per AS 10, estimates with respect to residual value aren’t required to be updated and reviewed. AS 19: Ind AS 17: AS 19 is not applicable to lease of lands. AS 10 vs Ind AS 16; AS 11 vs Ind AS 21; AS 12 vs Ind AS 20; Difference Between AS 19 and Ind AS 17. Gains arising from such derecognition shouldn’t be classified as part of revenue. Reconciliation of the carrying amount at the beginning and the end of the period. Apart from AS-19 contents The principal issues are the recognition of assets, the determination of their carrying amounts, and the depreciation charges and impairment losses to … Framework for the Preparation and Presentation of Financial Statements in accordance with Indian … However, such increase should be recognized in P/L statement to the extent of reversal of a revaluation decrease of similar asset recognized previously in the P/L statement, (d) In case the carrying amount of an asset is decreased due to revaluation, such decrease should be recognized in the P/L statement. Cost includes all costs necessary to bring the asset to working condition for its intended use. G.S.R 111(E) dated 16 Feb 2015 : The Companies (Indian Accounting Standards) Rules, 2015. Gain or loss arising from the de-recognition included in profit or loss. Ind AS 1 paragraph 31 states that a specific disclosure requirement in a standard need not be satisfied if the information is not material, except when required ... 16 1p32 Do not offset assets and liabilities or income and expenses unless required or permitted by an Ind AS. The residual value and the useful life of an asset should be reviewed at least at each financial year-end and, any change is accounted for prospectively as a change in estimate under Ind AS 8. Restrictions on title and items pledged as security for liabilities, Expenditures to construct PPE during the period. Finance Lease Refer Ind-AS 116. You see, paragraph 8 of Ind AS 16 says that "Spare parts and servicing equipment are usually carried as inventory and recognised in profit or loss as consumed. Just upload your form 16, claim your deductions and get your acknowledgment number online. As on date MCA has notified 41 Ind AS. AS 16: IND AS 23: 1: Qualifying Assets: As per the provision of AS-16, Qualifying Assets may Include Biological Assets because it does not exclude specifically out of coverage. Under IND AS 19 – At the end of every quarter if the books are audited quarterly or on an annual basis Under AS 15 – On an Annual Basis. Valuation Interval. Study Material will be provided. However, major spare parts, stand-by equipment and servicing equipment qualify as property, plant and equipment when an entity expects to use them during more than one period." Write off in SOPL in same year. From third parties for impairment is included in profit or loss when the claim becomes receivable. In accordance with IND-AS 16, the cost of an item of PPE is its cash price equivalent at the recognition date. has issued 39 Indian Accounting Standards (Ind AS) which have been notified under the Companies (Indian Accounting Standards) Rules, 2015 (‘Ind AS Rules’), of the Companies Act, 2013. The Institute of Chartered Accountants of India (ICAI), on 14 August 2017, issued educational material on Ind AS 16, which summarises the key requirements in Ind AS 16 and accounting issues that are expected to arise while implementing Ind AS 16 in the form of Frequently Asked Questions (FAQs). AS 12 gives an option to reduce the grant so received from gross value of such asset, As per Ind AS 16, the cost of any major inspections must be recognized in carrying the amount of the PPE. To be allocated on a systematic basis over the asset’s useful life. Subsequent Recognition. Conversion of Limited Liability Partnership into Private Limited Company; Conversion of Partnership Firm Into Private Limited Company … You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Applicability of Ind AS As per the notification released by the Ministry of Corporate Affairs (MCA) on 16 February 2015, the roadmap for Ind AS Items of PPE should be recognised as assets when: An item of property, plant and equipment should initially be recorded at cost. Capital exp. CAs, experts and businesses can get GST ready with ClearTax GST software & certification course. The Indiana State Department of Health says Indiana has 6,283 new confirmed cases of COVID-19 and 125 additional deaths. File Income tax returns for free in 7 minutes, Get expert help for tax filing or starting your business, Curated Mutual Funds & plans for tax savings, Complete solution for all your e-invoicing needs, I-T, e-TDS & Audit Software for CAs & Tax Professionals, Employee health plan, incl. Ind AS 16 Property Plant Equipment is not applicable in the following cases: (i) Property and P&E (Plant & Equipment) which are classified as held for sale as per Ind AS 105, (ii) Biological assets which are related to agricultural activities except bearer plants, (iii) The measurement and recognition of exploration and evaluation assets, (iv) Mineral rights and reserves like oil, natural gas and other such non-regenerative resources. Each part of PPE with a cost which is substantial with respect to the total cost of the PPE should be separately depreciated. Replacement. The objective of Ind AS 16 is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about an entity’s investment in its property, plant and equipment and the changes in such investment. ClearTax is a product by Defmacro Software Pvt. If the payment is deferred beyond normal credit terms, the difference between the cash price equivalent and total payment is charged as interest to P&L over the period, unless such interest is capitalized under IND AS-23. (i) Residual value and the useful life of assets. SCOPE Accounting for Property, Plant and Equipment except when another Standard requires or permits a different accounting treatment. Any gain or loss arising from such derecognition should be included in the P/L statement when such item is derecognized. Depreciation should be charged to profit or loss. Ind AS 16 considers such change as changes in the accounting estimate and is applied prospectively. 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