Question ID :
44870
Fixed Asset Capitalisation
Below are the scenario -
1) Office Buiding constructed on freehold land is at the end of it's useful life and fully depreciated.
2) Original Gross Block is Rs.100 Cr with approx carpet area 1 lac sq.ft.
3) The company decides to reconstuct / significantly refurbish approx 10 thousand sq.ft by spending Rs.30 Cr today from own funds.
4) The company management decided to remove proportionate WDV (Rs. 10Cr Gross Block and Rs.10Cr Accumulated Depreciation) and capitalise Rs.30Cr with Building.
Questions -
1) Is the above allowed as per IFRS / IndAS ?
2) If yes, should Stat Auditors need to give any special attention or FAP on this ?
3) Are there any references of similiar past practices ?
posted by
Debdatta Bandyopadhyay
on
Jun 5 2025 12:00AM