V - Tangible fixed assets (w.e.f. AY 2017-18)

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.... and Disclosure Standard, the provisions of the Act shall prevail to that extent. Scope 1. This Income Computation and Disclosure Standard deals with the treatment of tangible fixed assets. Definitions 2(1) The following terms are used in this Income Computation and Disclosure Standard with the meanings specified: (a) "Tangible fixed asset" is an asset being land, building, machinery, plant or furniture 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. (b) "Fair value" of an asset is the amount for which that asset could be exchanged between knowledgeable, willing parties in an arm's length transacti....

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....o not relate to a specific tangible fixed asset. Expenses which are specifically attributable to construction of a project or to the acquisition of a tangible fixed asset or bringing it to its working condition, shall be included as a part of the cost of the project or as a part of the cost of the tangible fixed asset. 8. The expenditure incurred on start-up and commissioning of the project, including the expenditure incurred on test runs and experimental production, shall be capitalised. The expenditure incurred after the plant has begun commercial production, that is, production intended for sale or captive consumption, shall be treated as revenue expenditure. Self- constructed Tangible Fixed Assets 9. In arriving at the actual cost....

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....oportion in the actual cost, accumulated depreciation and written down value is grouped together with similar fully owned tangible fixed assets. 15. Where several assets are purchased for a consolidated price, the consideration shall be apportioned to the various assets on a fair basis. Transitional Provisions 16. The actual cost of tangible fixed assets, acquisition or construction of which commenced on or before the 31st day of March, 2016 but not completed by the said date, shall be recognised in accordance with the provisions of this standard. The amount of actual cost, if any, recognised for the said assets for any previous year commencing on or before the 1st day of April, 2015 shall be taken into account for recognising actual ....