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