Panchayat:Repo18/vol2-page0738
738 GOVERNMENT ORDERS
r. Land pertaining to Parks and Playgrounds including the cost of development of land shall be booked underland. Other amenities to Parks and Playgrounds shall be capitalised as 'Parks and Playgrounds.
s. Any building/structures/plant and machinery, etc., constructed/installed in the Parks and Playgrounds and used for other purposes shall be booked under the appropriate heads of account.
t. Assets identified and evaluated technically as obsolete and held for disposal shall be stated at their net book value orestimated net realisable value, whichever is lower.
u. Intangible assets of the Panchayat including computer software shall be valued at cost plus consultants costs incurred, in implementing the software. It shall be capitalized, only when the intangible asset is developed and which can be used by Panchayat over a period of time to derive economic benefits from it. In case it is not so, the entire amount will be charged to revenue, in the year in which it is incurred. The intangible assets acquired shall be amortised over a period offive years or useful life, whichever is earlier.
v. If the Panchayat has taken a loan, or other borrowings for the Construction of an asset or a group of assets, interest shall be capitalised to that particular asset or the group of assets. If aparticular loan Cannot be identified for a specific asset, then capitalisation should be made at weighted average rate. The weighted average rate will be applicable after taking into consideration the period of Completion/building of assets and the amount invested in relation thereto.
w. Borrowing cost shall include interest and Commitment charges on the Bank borrowings and other short term and long term borrowings and amortisation of discounts or premiums related to the borrowings.
x. Capitalisation of the borrowing cost shall cease when substantially all the activities that is necessary to prepare the asset for its intended use or sale is complete. An asset is normally ready for its intended use or sale when its physical Construction or production is Complete even though the routine administrative work might still continue.
y. Depreciation on assets on which grant has been received shall be calculated on the gross value of Fixed Asset, i.e., without deducting the grant amount from asset value.
lease and Hire Purchase
a. Finance lease in the books of the Panchayat when it is the lessee
i. At the commencement of the lease term, finance leases shall be recorded as an asset and a liability. Such recognition shall beat an amount equal to the cost.
ii. Finance lease payments shall be apportioned between the finance charge and the reduction of the outstanding liability. The finance charge shall be allocated as to produce a Constant periodic rate of interest on the remaining balance of the liability for each of the period.
iii. Depreciation on such assets shall be provided at the same rates as in case of owned assets. b. Operating lease in the books of the Panchayat when it is the lessor
i. Assets given under operating lease shall be accounted as own assets in the same manner similar to any other fixed assets owned and used by the Panchayat.
ii. Lease income from operating leases shall be recognised as income on a straight-line basis over the lease term. Lease income shall be accrued on the respective due dates.
iii. Any amount incurred that results in improvement or increase of the useful life of the assets under operating lease shall be capitalised as like any other asset used by the Panchayat for its own operations.
iv. Depreciation on such assets shall be provided at the same rates as in case of owned assets.
c. Hire purchase in the books of the Panchayat when it is the buyer
i. The purchase price shall be capitalised as the cost of fixed assets at the time of entering into the Hire Purchase agreement.
ii. Hire Purchase (HP) installments shall be apportioned between the finance charge and the reduction of the principal outstanding. The finance charge shall be allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.
iii. The total amount of interest portion out of the HP Payable shall be accounted by debiting to a control account under Current assets. This amount will be adjusted on accounting of finance charges.
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ഈ താൾ 2018 -ലെ പഞ്ചായത്ത് റെപ്പോ നിർമ്മാണം യജ്ഞത്തിന്റെ ഭാഗമായി സൃഷ്ടിച്ചതാണ്. |