Accounting for fixed assets
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 August 2013
According to Para 9.4 of AS 10- Accounting for Fixed Assets, expenses (other than borrowing cost) incurred between the period of date of completion of construction of asset and date of commencement of commercial production can be deferred for a period not exceeding 3-5 years.
But the concept of deferred revenue expenditure does not exist right now.
So, whether the aforesaid deferment is possible?
But the concept of deferred revenue expenditure does not exist right now.
So, whether the aforesaid deferment is possible?
02 August 2013
With the introduction of AS 26 deferred revenue expenditure is virtually abolished.
Since AS 26 is a standard issued later than AS 10, AS 26 overrides AS 10 in case of contradiction.
Also to make this interpretation clear, ICAI has issued a Proposed revision to remove the second sentence in Para 9.4
So deferment is not possible
Since AS 26 is a standard issued later than AS 10, AS 26 overrides AS 10 in case of contradiction.
Also to make this interpretation clear, ICAI has issued a Proposed revision to remove the second sentence in Para 9.4
So deferment is not possible
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