Comparison Chart of ICDS-V, AS-10 & IndAS-16

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..... eld for sale in the normal course of business. There is no option of expensing off of immaterial assets resulting in onerous compliances and record keeping. Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business. However, an enterprise may decide to expense an item which could otherwise have been included as fixed asset, because the amount of the expenditure is not material. Similar to Indian GAAP. However, IndAS does not prescribe expensing any immaterial item. Major Spare Parts Machinery spares which can be used only in connection with a Tangible fi .....

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..... he commencement of commercial production Directly attributable costs may be capitalised only until the asset is capable of operating in the manner intended by management . If an asset is purchased or constructed and can operate in that manner immediately, costs incurred whilst the asset is standing idle may not be capitalised Replacement costs Expenditure that increases the future benefits from the existing asset beyond its previously assessed standard of performance is added to actual cost. Replacement cost of an item of property, plant and equipment is generally expensed when incurred. Only expenditure that increases the future benefits from the existin .....

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..... erent from the life specified in the Schedule. However, a different useful life may be used if such difference is disclosed and a justification, backed by technical advice, is provided in this behalf. Schedule II also mandates fixed assets to be componentised for depreciation purposes (componentisation is mandatory in respect of financial years commencing on or after 1 April 2015). Property, plant and equipment are componentised and are depreciated separately. There is no concept of minimum statutory depreciation under Ind AS. Change in method of depreciation Not covered by ICDS. However, change in accounting policy such as change in method of depreciation can be made only when there is a .....

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