Ifrs and indian as.. please help
pavitra gupta (CA) (28 Points)
11 March 2015pavitra gupta (CA) (28 Points)
11 March 2015
amit
(CA Job)
(31 Points)
Replied 01 July 2015
Dear Pavitra,
First of all , there is no concept of writing off of assets less than Rs. 5000 fully in the year of purchase as per IFRS. Its upto accounting policy of the company. Even schedule II of the Companies Act, 2013 does not make it mandatory to write off all assets costing less than Rs. 5000 @ 100% p.a.
As regarding component accounting, it say that if any component of the asset has useful life which is significantly different as compared to useful life of the full asset, then, that component and remaing asset must be depreciated over respective useful lives. However, it must be remembered that component must be material part of the assets and its life must be different from the useful life of remaiing asset.
In your exapmple, it cannot be concluded that useful life of room is significantly different from useful life of building. Room are integral part of the building. Hence, both rooms and remaining building must be depreciated over useful life of assets.
regards
Amit Goel
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