Companies generally set an internal limit for capitalisation of spares. An example could be:- An internal limit of Rs. 50,000 is set i.e., any item of spare having useful life of more than 1 year and value more than Rs. 50,0...

Companies operating in the same line of business generally contract to supply the same units of products to each other’s customers. For example:- Entities A Ltd. and B Ltd. are both engaged in the extraction and supply...

While preparing consolidated financial statements, it is pertinent that all like transactions of all entities being consolidated, are being recorded using uniform accounting policies.

Companies sometimes receive grants from government with specific conditions of spending the grants so received. Companies sometimes may not be sure that the conditions would be fulfilled. For example:- A Ltd. has received a ...

Generally, during construction of a qualifying asset, there is a wide variance in the amount of borrowing cost to be capitalised based on the accrual basis (cost of construction accrued) and on actual cash flows basis (cash paymen...

Ind AS 37 requires that for a liability to qualify for recognition, there must be not only a present obligation but also the probability of an outflow of resources embodying economic benefits to settle that obligation.