Generally Accepted Accounting Principles, IAS 16, Historical cost

Fixed Tangible assets forms an important line item in the Balance Sheet of any company especially in the case of a manufacturing concern. As per the International Accounting Standard (IAS) 16 Property, Plant and Equipment, items pertaining to various classes of property, plant and equipment shall be classified as assts when the following two conditions are fulfilledThe important thing to consider at the time of recognition of fixed asset is the identification of the relevant cost based on which the asset should be capitalized in the balance sheet of the company. The cost include cost incurred at the time of purchase of asset such as cash payment for the acquisition of assets, duty paid on the import of assets at the time of import, transportation cost incurred for bringing the asset to