IND AS 2Inventories 📦
Lower of cost and net realisable value — always.
Never write inventory above original cost.
NRVFIFO / weighted avg
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IND AS 16Property, Plant & Equipment 🏗️
Capitalise what brings the asset to working condition.
Depreciate component by component, not as one lump.
component depreciationrevaluation surplus
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IND AS 38Intangible Assets 💡
Research = always expensed.
Development = capitalised only if all 6 strict criteria are met.
six criteriaindefinite useful life
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IND AS 40Investment Property 🏢
Held for rental income or capital appreciation — not own use.
Cost model mandatory in India; fair value only disclosed.
rental yieldowner-occupied carve-out
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IND AS 36Impairment of Assets 📉
Carrying amount > recoverable amount → write it down.
Recoverable = higher of two possible exits.
CGUvalue in use
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IND AS 105Held for Sale & Discontinued Ops 🚪
Once genuinely held for sale → stop depreciating.
Measure at the lower of two numbers.
highly probable salediscontinued op
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IND AS 20Government Grants 🏛️
Match the grant to the expense/asset it compensates for.
Never straight to equity.
deferred incomegrant related to income
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IND AS 23Borrowing Costs 🏦
Interest on funds for a qualifying asset gets capitalised.
Only during the active construction period.
qualifying assetcapitalisation rate
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