TMI BlogPOLLUTION CONTROL COSTX X X X Extracts X X X X X X X X Extracts X X X X ..... presentation and disclosure of Pollution Control Costs including those requiring attestation. 4. Definitions The following terms are being used in this standard with the meaning specified. 4.1 Air pollutant: Air Pollutant means any solid, liquid or gaseous substance (including noise) present in the atmosphere in such concentration as may be or tend to be injurious to human beings or other living creatures or plants or property or environment 1 . 4.2 Air Pollution: Air pollution means the presence in the atmosphere of any air pollutant. 2 4.3 Cost Object: This includes a product, service, cost centre, activity, sub-activity, project, contract, customer or distribution channel or any other unit in relation to which costs are ascertained. 3 4.4 Direct Expenses: Expenses relating to manufacture of a product or rendering a service, which can be identified or linked with the cost object other than direct material cost and direct employee cost. 4 4.5 Environment: Environment includes water, air and land and the inter-relationship which exists among and between water, air and land, and human beings, other living creatures, plants, micro-organism ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s its threshold concentration level. 4.15 Standard Cost: A predetermined cost of resource inputs for the cost object computed with reference to set of technical specifications and efficient operating conditions. Standard costs are used as scale of reference to compare the actual costs with the standard cost with a view to determine the variances, if any, and analyse the causes of variances and take proper measure to control them. Standard costs are also used for estimation. 4.16 Water pollution: Pollution means such contamination of water or such alteration of the physical, chemical or biological properties of water or such discharge of any sewage or trade effluent or of any other liquid, gaseous or solid substance into water (whether directly or indirectly) as may, or is likely to, create a nuisance or render such water harmful or injurious to public health or safety, or to domestic, commercial, industrial, agricultural or other legitimate uses, or to the life and health of animals or plants or of aquatic organisms. 12 5. Principles of Measurement: 5.1 Pollution Control costs shall be the aggregate of direct and indirect cost relating to Pollution Control ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried out by contractor at its premises shall be determined at invoice or agreed price including duties and taxes, and other expenditure directly attributable thereto net of discounts (other than cash discount), taxes and duties refundable or to be credited. This cost shall also include the cost of other resources provided to the contractors. 5.8 Cost of Pollution Control jobs carried out by outside contractors shall include charges made by the contractor and cost of own materials, consumable stores, spares, manpower, equipment usage, utilities and other costs used in such jobs. 5.9 Each type of Pollution Control e.g. water, air, soil pollution shall be treated as a distinct activity, if material and identifiable. 5.10 Finance costs incurred in connection with the Pollution Control activities shall not form part of Pollution Control costs. 5.11 Pollution Control costs shall not include imputed costs. 5.12 Price variances related to Pollution Control, where standard costs are in use, shall be treated as part of Pollution Control cost. The portion of usage variances attributable to normal reasons shall be treated as part of Pollution Control cost. Usage varian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he various cost objects in proportion to the benefits received by them. Typical of such costs are costs such as administration costs relating to pollution control activities, costs of certification such as ISO 14000 and registration fees payable to pollution control authorities 6.3 If the Pollution Control cost (including the share of the cost of reciprocal exchange of services) is shared by several cost objects, the related cost shall be measured as an aggregate and distributed among the cost objects as per principles laid down in Cost Accounting Standard 3. 7. Presentation 7.1 Pollution Control cost, if material, shall be presented in the cost statement as a separate item of cost. 7.2 Pollution control costs shall be presented duly classified as follows: (a) Direct and Indirect cost (b) Internal and External costs (c) Current and future costs (d) Domain area e.g. water, air and soil. 7.3 Activity wise details of Pollution Control cost, if material, shall be presented separately. 8. Disclosures 8.1 The cost statements shall disclose the following: 1. The basis of distribution of Pollution Control cost to the cost obje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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