AS 10 REVISION ICAI

The following is the Exposure Draft of the limited revisions to
Accounting Standard (AS) 10, Accounting for Fixed Assets, which are
proposed primarily to (i) improve accounting for fixed assets during their
construction period; (ii) incorporate changes consequential to the
requirements contained in Accounting Standard 29, Provisions,
Contingent Liabilities and Contingent Assets, in respect of the provision
made for costs of dismantling and removing the items and restoring the
site on which an asset is located, the obligation for which an entity incurs
when the item is acquired or as a consequence of having used the item
during a particular period for purposes other than to produce inventories
during that period; (iii) improve accounting for spares with a view to
bring it in line with the improvements being made in IAS 16, Property,
Plant and Equipment at the suggestion made in this regard by the
Institute of Chartered Accountants of India to the International
Accounting Standards Board; and (iv) bring about consistency between
this standard and other Accounting Standards. As a consequence to the
change in the accounting for spares, the Guidance Note on Accounting
for Machinery Spares (RE: AS 2 and AS 10), would stand withdrawn
from the date the changes made in this regard come into effect.
The changes made in the standard are indicated in track-changes
mode.
The Board invites comments on any aspect of this Exposure Draft.
Comments are most helpful if they indicate the specific paragraph or
group of paragraphs to which they relate, contain a clear rationale and,
where applicable, provide a suggestion for alternative wording.
Comments should be submitted in writing to the Secretary,
Accounting Standards Board, The Institute of Chartered Accountants of
India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi
– 110 002, so as to be received not later than December 20, 2011.
Comments can also be sent by e-mail at edcommentsasb@icai.org or
asb@icai.org.
(This Accounting Standard includes paragraphs 18-4239 set in bold
italic type and paragraphs 1-17 set in plain type, which have equal
authority. Pa ra g ra p h s in b o ld ita lic typ e in d ica te th e
ma in p rin cip
les . Th is Accounting Standard should be read in the context of the
Preface to the Statements of Accounting Standards1 .)
In the initial years, this accounting standard will be recommendatory in
character. During

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CA Ramachandran Mahadevan,M.Com.,F.C.A.,