[Illustrative Checklist] Disclosure requirements under AS 10 | Property, Plant and Equipment

The objective of AS 10, Property, Plant and Equipment, is to prescribe the accounting treatment for property, plant and equipment so that users of the financial statements can discern information about investment made by an enterprise in its property, plant and equipment and the changes in such investment. The principal issues in accounting for property, plant and equipment are the recognition of the assets, the determination of their carrying amounts and the depreciation charges and impairment losses to be recognised in relation to them. This Standard does not apply to biological assets related to agricultural activity other than bearer plants and wasting assets including mineral rights, expenditure on the exploration for and extraction of minerals, oil, natural gas and similar non-regenerative resources.

As per the stipulation of this standard, an entity must comply with the below-mentioned disclosure requirements:

I. Has entity disclosed for each class of PPE:

a) Bases of measurement (i.e., cost model or revaluation model) to determine the gross carrying amount

b) Method of depreciation

c) The useful lives or the depreciation rates used. In case the useful live or the depreciation rates are different from those specified in the statute governing the enterprise, has a specific mention of that fact been made

d) The gross carrying amount and the accumulated depreciation at the beginning and end of the period

e) A reconciliation of the carrying amount at the beginning and end of the period showing:

• • • Additions
    • Assets retired from active use and held for disposal
    • Acquisitions through business combination
    • Increase or decrease resulting from revaluation recognised or reserved directly in revaluation surplus
    • Impairment losses recognised in the statement of profit and loss in accordance with AS 28
    • Impairment losses reversed in the statement of profit and loss in accordance with AS 28
    • Depreciation
    • The net exchange differences arising on the translation of the financial statements of a non-integral foreign operation in accordance with AS 11
    • Other changes

Click Here To Read The Full Story