## Miscellaneous Provisions under AS 10
---
### 1. Investment Property
| Item | Rule |
|---|---|
| Governed by | AS 13 — Accounting for Investments |
| Measurement / Accounting | Uses Cost Model as per AS 10 |
Investment property is defined in AS 13, but its day-to-day accounting (depreciation, carrying amount) follows AS 10's cost model.
---
### 2. PPE Acquired at a Consolidated (Lump-Sum) Price
When multiple assets are purchased together for a single price:
Step 1: Identify the Fair Value (FV) of each individual asset
Step 2: Allocate the total price paid in the ratio of Fair Values
```
Amount for Asset X = Total Price Paid × (FV of X ÷ Total FV of all assets)
```
Example — Total Paid: ₹3,15,000
| Asset | Fair Value | Ratio | Allocated Cost |
|---|---|---|---|
| iPad | ₹50,000 | 50/350 | ₹45,000 |
| iPhone | ₹80,000 | 80/350 | ₹72,000 |
| MacBook | ₹1,20,000 | 120/350 | ₹1,08,000 |
| Total | ₹3,50,000 | ₹3,15,000 |
Each asset is then capitalized at its allocated cost and depreciated independently.
---
### 3. Insurance Claim on Damage of Assets
| Item | Treatment |
|---|---|
| Insurance claim | Record as income in P&L in the year it is certain to be received |
| Loss on damage | Record as expense in P&L separately |
| Presentation | Do NOT net off — both must appear independently |
Example:
Asset damaged → Loss ₹1,00,000 | Insurance claim confirmed ₹90,000
- P&L debit: Loss on damage ₹1,00,000
- P&L credit: Insurance claim income ₹90,000
- Do not show only the net loss of ₹10,000