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Ind-AS 16: Property, Plant and Equipment (Initial Recognition (Payment by…

- - - - Have agricultural produce
      - Useful life of more than 1 year
      - Not grown with intention of getting lumber
- - - - Purchase Price
      - Related Expenses
      - Est. Removal Cost
    - - Trade Discounts
      - Govt. Grants
      - Scrap from sale of sample units
      - Refundable Duties/Taxes
      - Advertisement exp. for promotion
      - Inauguration exp.
      - Staff training cost
      - General Admin. & Selling OH
  - - - Direct Material
      - Direct Wages
      - Direct Exp.
      - Share in Common exp.
        (Reasonable Basis)
  - - - As per Ind-AS 16
    - - PV of MLP or Fair Value,
        whichever is lower
- - - - Upward revaluation trf to Rev. Res.
      - Increse in dep. due to revaluation will be trf from Rev. Res. to Retained Earnings but not routed through SOPL
    - - At least once during 3-5 years
      - Can be done annually if market prices are not stable
    - - Class of assets formed by grouping similar assets
      - Revaluation cannot be done for a single asset,
        but all assets in that class
    - - Direct Method
        Change CA only
      - Indirect (Original Cost) Method
        Increase original cost and acc. dep. proportionately
        as per increase in CA
    - - Adjust upward/downward against each other first
      - Write off balance in SOPL/Transfer balance to Rev. Res.