Recognition & Measurement of PPE

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..... ualifies for 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 ₹ Purcha .....

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..... ting Cost XXX + Site preparation cost XXX + Expenditure incurred on test runs experimental production after deducting net proceeds received on sale of items produced during test runs XXX + Any other directly attributable cost to bring the asset to the location condition necessary t .....

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..... / early settlement discount Interest cost on loan taken to buy or construct PPE (Unless allowed as per Ind AS 23). Income from incidental activities done by entity during construction of PPE but are not necessary for its construction such income will be recognised in P L and not included in PPE cost. Journal Entries At inception For PPE purchase/construction .....

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..... hange or part exchange for another asset, the asset received is usually recorded at FAIR Value Determination of cost of asset to be recorded is based on the following TWO conditions If exchange transaction has commercial substance, then recognise PPE acquired at following in priority Fair Value of Asset given up. Fair Value of Asset received. Carrying Amount of Asset g .....

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