US GAAP, IFRS

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US GAAP, IFRS Indian GAAP A Comparison
Property, Plant and Equipment
Coca Cola India
Vikas Lal
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Contents

• Property, plant and equipment
• Various Statutes
• Definition Scope
• Recognition and costs of PPE
• Subsequent Expenditure
• Depreciation
• Property, Plant and Equipment held for Disposal
• Revaluation
• Accounting for computer software for internal use

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Statutes
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Definition Scope
Basic definition of Property, Plant and Equipment
is the same In USGAAP and IGAAP
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Definition Scope
In IFRS and I GAAP, some assets like biological
assets, mineral rights, Extraction of minerals,
oil and natural gas and livestock are excluded As
special considerations apply to them
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Recognition and Cost of PPE
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Recognition and Cost of PPE..Contd
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Recognition and Cost of PPE ..Contd
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Recognition and Cost of PPE ..Contd
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Recognition and Cost of PPE ..Contd
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Subsequent Expenditure ( Under USGAAP )
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Subsequent Expenditure ( Under USGAAP )
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Subsequent Expenditure ( Under USGAAP )
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Subsequent Expenditure ( Under IGAAP )
In IGAAP, all repair and maintenance expenditure
are Expensed Off, other than those expenditure
that increases the future benefits from the
existing asset beyond its previously assessed
standard of performance
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Depreciation
In IGAAP companies needs to ensure that minimum
depreciation is provided as per rates prescribed
in schedule XIV of the companies Act, 1956.
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Depreciation ..Contd
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PPE held for disposal
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PPE held for disposal
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PPE ( Assets temporarily idled )
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Revaluation
Revaluation of Assets not permitted in USGAAP
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Revaluation ..Contd
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Revaluation ..Contd
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US GAAP, IFRS Indian GAAP A Comparison
Computer Software development Accounting for the
Costs of Computer Software Developed or Obtained
for Internal Use Statement of Position 98-1
Coca Cola India
Vikas Lal
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• Characteristics of Internal-use
  software
• - The software is acquired, internally developed,
  or modified solely to meet the entitys internal
  needs
• - During the softwares development or
  modification, no substantive plan exists or is
  being developed to market the software externally
  
• FAS 86 covers Accounting for the Costs of
  Computer Software to be sold, Leased, or
  otherwise Marketed

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Activities under various stages
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Which expenses can be capitalised ?
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Which expenses can be capitalised ?
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Which expenses can be capitalised ?
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Which expenses can be capitalised ?
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Which expenses can be capitalised ?
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Amortization

• Software Costs to be amortized on a
  straight-line basis unless another systematic
  rational basis is more representative of the
  softwares use
• In determining reassessing the useful life of
  the software, entities should consider the
  effects of obsolescence, rapid changes in
  technology , other economic factors
• For each module or component of a software
  amortization should begin when it is ready for
  its intended use regardless of whether the
  software will be placed in service in planned
  stages etc.. Module is ready for use when all
  the testing is completed.

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Thank You
Coca Cola India
Vikas Lal
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Capitalisation of Interest costs
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Capitalisation of Interest costs
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Capitalisation of Interest costs