The following is the Exposure Draft of the limited revisions to Accounting Standard (AS) 10, Accounting for Fixed Assets, which are proposed primarily to (i) improve accounting for fixed assets during their construction period; (ii) incorporate changes consequential to the requirements contained in Accounting Standard 29, Provisions, Contingent Liabilities and Contingent Assets, in respect of the provision made for costs of dismantling and removing the items and restoring the site on which an asset is located, the obligation for which an entity incurs when the item is acquired or as a consequence of having used the item
during a particular period for purposes other than to produce inventories during that period; (iii) improve accounting for spares with a view to bring it in line with the improvements being made in IAS 16, Property,
Plant and Equipment at the suggestion made in this regard by the Institute of Chartered Accountants of India to the International Accounting Standards Board; and (iv) bring about consistency between this standard and other Accounting Standards. As a consequence to the change in the accounting for spares, the Guidance Note on Accounting for Machinery Spares (RE: AS 2 and AS 10), would stand withdrawn from the date the changes made in this regard come into effect.

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March 2024