Property, Plant, and Equipment Disclosure as per Ind AS for preparing Financial Statement as per Division II – Ind AS Schedule III to the Companies Act 2013

i) Classification shall be given as:

(a) Land;

(b) Buildings;

(c) Plant and Equipment;

(d) Furniture and Fixtures;

(e) Vehicles;

(f) Office equipment;

(h) Bearer Plants;

(g) Others (specify nature).

(ii) Assets under lease shall be separately specified and also apply presentation and disclosure requirements as per Ind AS 116

iii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses/reversals shall be disclosed separately.

And Also Opening Accumulated Depreciation, Depreciation/amortization for the year, Deductions / Other adjustments and Closing Accumulated Depreciation / Amortization. Similar disclosures should also be made for Impairment, if any, as applicable.

As per Ind As 101, An entity may opt to record Property, Plant and equipment at its fair value or use a previous GAAP carrying amount of P.P.E and then such value becomes new ‘gross block’ and accordingly presented in the reconciliation statement.

In case if the company wants to disclose information regarding gross block of assets, accumulated depreciation and provision for impairment under previous GAAP, the same may only be disclosed as an additional information by way of a note forming part of the financial statements.

Acquisition: – All the acquisition by way of assets acquisition or through business combination are to be disclosed as a part of reconciliation in each class of assets.

Also, in the case of demerger, assets dispose to be disclosed separately in each class of assets.

Other Adjustments like net exchange gain/loss arising on the translation of the financial statements from the functional currency into a presentation currency shall be made in a manner prescribed in Ind AS 16.

Under Ind AS Schedule III, land and building are presented as two separate classes of property, plant and equipment. In contrast, paragraph 37 of Ind AS 16 gives an example of grouping land and building under the same class for revaluation purposes. The para states that a class of property, plant and equipment is a grouping of assets of a similar nature and use in an entity’s operations. However, companies should continue to present land and building separately as given in Ind AS Schedule III and such presentation needs to be followed consistently.

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

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