FAR - Fixed Asset Register

FAR  - Fixed Asset Register

·         Fixed Assets occupies significant portion of Total Assets (Fixed Assets + Current Assets) in Indian Railways.

·         Compiling FAR is the important stage in the implementation of Accrual Accounting in Indian Railways.

·         All the Fixed Assets that are in existence as at the end of the year i.e., before adopting the Accrual Accounting in IR shall have brought to the FAR.  So that closing balances of previous year Asset Heads forms Opening Balances of current year Balance Sheet.

·         Definition of Fixed Assets   - IGFRS 2 (Indian Govt Financial Reporting Standards) issued by GASAB – Govt Accounting Standards Advisory Board  is

1.       The Property Plant & Equipment

2.       It should be tangible

3.       Held by an entity for use in Production / Supply of Goods & Services / for Rental to others / Administrative purpose (Office Building like Zonal Hqrs, Divisional Hqrs etc)

4.       Expected to be used during more than one reporting / financial year.

·         Fiduciary control  - Leased Assets in IR i.e., Rolling Stock from IRFC are also brought under FAR (though IRFC is the legal owner)

·         Not covered under FAR  - Insignificant items like Library Books, Computer peripherals, small items of equipments. However major spare parts and standbys equipment used more than one year are comes under FAR.

·         FAR  - The following information includes about Fixed Assets

1.       Description (in detail)

2.       Stockholder code (i.e., SSE, Sr.DEN, TXR etc)

3.       Block Section  (Between two Railway stations to trace the location in open line)

4.       Cost of Acquisition / Construction ( Acquisition Cost = Purchase Price + Import duties + Taxes + Incidental expenses – Trade discounts)  -“Where an Asset does not have a determinable cost, a nominal value of Re One may be taken for financial statement purpose” .  But this is the last alternative.

5.       Improvements should add to the cost  (But not POH or repair charges)

6.       Date of Acquisition (for Civil works – Completion of Construction.  For others – Purchase date)

7.       Mode of Acquisition  ( Construction, Purchase, Transfer, Gift etc)

8.       Reference of Title Documents

9.       Codal Life  (as per codes)  - useful for calculation of Depreciation

10.   Allocation Code – (Source of Allocation i.e., CAP., DRF, DF etc and Allocation i.e., Plan Head, Sub Head etc)

11.   Depreciation Rate   (Cost minus salvage value /codal life)

12.   Accumulated Depreciation  - From the date of acquisition to preparation of FAR

13.   WDV – Written Down Value / Net Book Value  ( Total cost minus Accumulated depreciation)

14.   Remarks  - Any other significant remarks (example encroaching of land )

FAR – Different formats for different category of Assets

FA 1 – Land		FA 2 – Buildings		FA 3 – Bridges, Tunnels, ROB
FA 4 – Roads and streets		FA 5 – Track /P Way (Source: TMS – Track Management System  Separately for Rails, Sleepers & Ballast)		FA 6 – Furniture  (source: T & P register)
FA 7 – Office equipments (Source: T & P Register)		FA 8 – Commercial Vehicles		FA 9 – Plant & Machinery and Equipment (Except for S&T Dept)
FA 10 – Computers & Peripherals (Source: T&P register)		FA 11 – Medical equipments		FA 12 – Rolling Stock (compiled by ICAI-ARF  central team duly taking the records from Zonal Rlys)
FA 13- CWIP – Capital Works In Progress (at present no concept in IR)		FA 14 – Plant, Machinery & Equipment of Signal Dept		FA 15 – Plant, Machinery & Equipment of Telecom Dept
FA 16 – Electrical equipment & fittings of Commercial Dept		FA 17 – Intangible Assets (Copy rights, patents, Goodwill, Software etc)		FA 18 – OHE (Over Head Equipment)

·         T & P Register for source of FA 6 (Furniture), FA 7 (Office equipments) & FA 10 (Computer peripherals)

·         FA 13 – CWIP - Capital Works In Progress is new concept for Indian Railways

·         FA 12 – Rolling Stock - ICAI ARF (Institute of Chartered Accountants of India – Accounting Research Foundation) Central team collects the details from Zonal Hqrs records – Most of the Rolling stock is leased from IRFC

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