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Accounting standards

Accountancy

Dear sir, Regarding Accounting, AS-10-Video 15," As Mining, Oil, Natural gas and similar assets are wasting assets and AS-10 is not applicable for this" is what sir taught, then Why are we saying that part AS-10 and part AS-2 apply for that Oil and Gas question.

Madhaan S

CA Final

★ 14K+

25-Mar-21 12:09

328

Answers (2)

Best Answer

Gas storage, oil refining plants are considered as PPE. What is excluded from AS is Mineral rights, Expenditure on the exploration for and extraction of minerals, oil, natural gas and similar non-regenerative resources. In the questions, minimum level of oil, gas are necessary for plant, gas storage to operate efficiently, thus will be classified as component of PPE.