PPT: Accounting Standards (10) | Advanced Accounting for CA Intermediate PDF Download

 Page 1


OBJECTIVES
• Describe “Accounting treatment for PPE”.
• Discern information about investment in 
PPE.
• Changes in such investments.
Page 2


OBJECTIVES
• Describe “Accounting treatment for PPE”.
• Discern information about investment in 
PPE.
• Changes in such investments.
PRINCIPAL ISSUES IN ACCOUNTING OF PPE
Principal 
Issues
Depreciation 
Charges
Determination of 
their carrying 
amounts
Impairment losses 
to be recognized 
in relation to them
Recognition of the 
assets
Page 3


OBJECTIVES
• Describe “Accounting treatment for PPE”.
• Discern information about investment in 
PPE.
• Changes in such investments.
PRINCIPAL ISSUES IN ACCOUNTING OF PPE
Principal 
Issues
Depreciation 
Charges
Determination of 
their carrying 
amounts
Impairment losses 
to be recognized 
in relation to them
Recognition of the 
assets
SCOPE OF THE STANDARD
Does not applies to
Biological Assets except 
for bearer plants
Wasting Assets (Mineral 
rights, oils and natural 
gas)
Page 4


OBJECTIVES
• Describe “Accounting treatment for PPE”.
• Discern information about investment in 
PPE.
• Changes in such investments.
PRINCIPAL ISSUES IN ACCOUNTING OF PPE
Principal 
Issues
Depreciation 
Charges
Determination of 
their carrying 
amounts
Impairment losses 
to be recognized 
in relation to them
Recognition of the 
assets
SCOPE OF THE STANDARD
Does not applies to
Biological Assets except 
for bearer plants
Wasting Assets (Mineral 
rights, oils and natural 
gas)
DEFINITION OF PPE
A tangible asset becomes PPE if
It is held for use in production or supply 
of goods or services (or) for rentals to 
others (or) for administrative purposes
Expected to be used for more than 12 
months
Page 5


OBJECTIVES
• Describe “Accounting treatment for PPE”.
• Discern information about investment in 
PPE.
• Changes in such investments.
PRINCIPAL ISSUES IN ACCOUNTING OF PPE
Principal 
Issues
Depreciation 
Charges
Determination of 
their carrying 
amounts
Impairment losses 
to be recognized 
in relation to them
Recognition of the 
assets
SCOPE OF THE STANDARD
Does not applies to
Biological Assets except 
for bearer plants
Wasting Assets (Mineral 
rights, oils and natural 
gas)
DEFINITION OF PPE
A tangible asset becomes PPE if
It is held for use in production or supply 
of goods or services (or) for rentals to 
others (or) for administrative purposes
Expected to be used for more than 12 
months
BIOLOGICAL ASSETS
Till the accounting standard on ‘Agriculture’ is issued, the biological assets 
such as accounting for livestock meeting the definition of PPE will be 
covered under AS-10 (revised). 
Biological Assets
Living Animal Plant
AS-10 does 
not apply
AS-10applies to 
bearer plants