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ARTICLE · 16 OCTOBER 2015

Income Computation And Disclosure Standard (ICDS) On Tangible Fixed Assets

S.C. Vasudeva & Co.
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The ICDS on tangible fixed assets is based on the Accounting Standard on Accounting for Fixed Assets (AS-10) notified by The Companies Accounting Standards Rules, 2006.

IndiaAccounting and Audit
S.C. Vasudeva & Co.
S.C. Vasudeva & Co.

The ICDS on tangible fixed assets is based on the Accounting Standard on Accounting for Fixed Assets (AS-10) notified by The Companies Accounting Standards Rules, 2006. The important provisions of the ICDS are discussed below:

Identification of Tangible Fixed Assets

  • "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.
  • Stand-by equipment and servicing equipment are to be capitalised. Machinery spares shall be charged to the revenue as and when consumed. When such spares can be used only in connection with an item of tangible fixed asset and their use is expected to be irregular, they shall be capitalised.

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