Description
Comparison of AS 6 and AS 10 with IFRS
Comparison of AS 6 and AS 10 with IFRS
Replacement Cost
AS 10 Replacement cost of an item of property, plant and equipment is generally expensed when incurred. IAS 16 Replacement cost of an item of property, plant and equipment is capitalised if replacement meets the recognition criteria. Carrying amount of items replaced is derecognised.
Cost of Major Inspection
AS 10 Costs of major inspection are expensed when incurred.
IAS 16 Cost of major inspections and overhauls are recognised in the carrying amount of property, plant and equipment.
Revaluation
AS 10 No specific requirement on frequency of revaluation.
IAS 16 Revaluations are required to be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.
Depreciation
AS 6 Where the useful life is shorter than that envisaged under the Companies Act or the relevant statute, the depreciation is computed by applying a higher rate. Asset lives are not prescribed by the Companies Act, but can be derived from the depreciation rates.
IAS 16 Allocated on a systematic basis to each accounting period over the useful life of the asset.
Transfers From Revaluation Reserve
AS 10 Transfers to be done through the statement of profit and loss.
IAS 16 Transfers from revaluation to retained earnings are made directly and not through profit or loss.
Reassessment of useful life and depreciation method
AS 10 Not required.
IAS 16 Requires annual reassessment of useful life.
Leasehold Land
AS 10 Disclosed as a part of fixed assets.
IAS 16 Disclosed as prepaid assets.
Residual Value
AS 10 Estimates of residual value are not updated.
IAS 16 Estimates of residual value needs to be reviewed at least at each year end.
doc_953459719.ppt
Comparison of AS 6 and AS 10 with IFRS
Comparison of AS 6 and AS 10 with IFRS
Replacement Cost
AS 10 Replacement cost of an item of property, plant and equipment is generally expensed when incurred. IAS 16 Replacement cost of an item of property, plant and equipment is capitalised if replacement meets the recognition criteria. Carrying amount of items replaced is derecognised.
Cost of Major Inspection
AS 10 Costs of major inspection are expensed when incurred.
IAS 16 Cost of major inspections and overhauls are recognised in the carrying amount of property, plant and equipment.
Revaluation
AS 10 No specific requirement on frequency of revaluation.
IAS 16 Revaluations are required to be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.
Depreciation
AS 6 Where the useful life is shorter than that envisaged under the Companies Act or the relevant statute, the depreciation is computed by applying a higher rate. Asset lives are not prescribed by the Companies Act, but can be derived from the depreciation rates.
IAS 16 Allocated on a systematic basis to each accounting period over the useful life of the asset.
Transfers From Revaluation Reserve
AS 10 Transfers to be done through the statement of profit and loss.
IAS 16 Transfers from revaluation to retained earnings are made directly and not through profit or loss.
Reassessment of useful life and depreciation method
AS 10 Not required.
IAS 16 Requires annual reassessment of useful life.
Leasehold Land
AS 10 Disclosed as a part of fixed assets.
IAS 16 Disclosed as prepaid assets.
Residual Value
AS 10 Estimates of residual value are not updated.
IAS 16 Estimates of residual value needs to be reviewed at least at each year end.
doc_953459719.ppt