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AS 10 Accounting for Fixed Assets - Coggle Diagram
AS 10 Accounting for Fixed Assets
Introduction
Fixed Asset Definition: Intent of producing or providing goods or services, Non-saleable, multi-period use assets.
Examples: Land, Buildings, Machinery, Furniture, Computers.
Applicability
Exclusions:
Regenerative Natural Resources.
Wasting Assets (Minerals, Oil).
Real Estate Development.
Livestock.
Recognition Criteria
Future Benefits Probability.
Reliable Cost Measurement.
Historical Cost Components
Purchase Price.
Duties, Taxes.
Direct Costs: Site Prep, Delivery, Installation, Professional Fees.
Start-up and Commissioning.
Government Grants Deduction.
Foreign Currency Adjustments.
Asset Exchange Accounting
Non-similar Assets: Fair Value Recording.
Similar Assets: Fair or Net Book Value.
Share or Security Payments: Fair Value Basis.
Revaluation Approach
Method: Competent Valuation, Price Index.
Limit: Net Recoverable Amount.
Display: Gross Book Value, Accumulated Depreciation.
Accounting Treatment
Upward Revaluation: Credit to Revaluation Reserve.
Downward Revaluation: Charge to Profit and Loss.
Hire Purchase Assets
Recording: Cash Price Basis.
Improvements and Repairs
No Benefit Change: Charge to Profit and Loss.
Increased Future Benefit: Add to Asset Value.
Retirement and Disposal
Deletion Criteria: Disposal or Benefit End.
Gain/Loss: Recognition in Profit and Loss.
Retired Assets: Lower of Net Value or Realisable Value.
Disclosure Requirements
Asset Values: Gross, Net Start/End Period.
Movements: Additions, Disposals, Acquisitions.
Construction/Acquisition Expenditure.
Revaluation Details: Method, External Valuation.