Recognition & Measurement of PPE

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... recognition as an asset should be measured at its COST- At the time of initial recognition of purchase of PPE or self-constructed PPE, Cost includes any directly attributable cost necessary to bring PPE to location & condition intended by management. Cost of asset includes the following: - Particulars ₹ Purchase Price (Basic Price) XXX (-) Trade Discount/Rebate (XXX) + Non-Refundab....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ary invest of loan proceeds (XXX) Cost of PPE to be capitalised XXX Note: - * Following items are to be Excluded in capitalisation of PPE - * General administration and other overhead expenses are usually excluded from the cost they are not related to specific asset. * Cost of staff training * Cost of relocation of staff/employees or reorganising part or all of the entity's operation. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eciation to P&L P&L A/c Dr. XXX To Depreciation A/c XXX * Deferred Credit Period If PPE is acquired on deferred settlement basis. i.e., payment beyond normal credit period. Any extra amount paid over the normal purchase price (Cash Price) is recognised as "Interest Expense" (Finance Cost) over the credit period in P&L and not included in PPE Cost. * If PPE is acquired in "Exchange of Ass....