Moneycontrol Be a Pro
Get App
SENSEX NIFTY
Moneycontrol.com India | Accounting Policy > Pharmaceuticals > Accounting Policy followed by Fresenius Kabi Oncology - BSE: 532545, NSE: FKONCO
YOU ARE HERE > MONEYCONTROL > MARKETS > PHARMACEUTICALS > ACCOUNTING POLICY - Fresenius Kabi Oncology

Fresenius Kabi Oncology

BSE: 532545|NSE: FKONCO|ISIN: INE575G01010|SECTOR: Pharmaceuticals
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
Fresenius Kabi Oncology is not traded in the last 30 days
Fresenius Kabi Oncology is not traded in the last 30 days
Mar 12
Accounting Policy Year : Mar '13
a.  Basis of preparation of Financial Statements:
 
 The accounts have been prepared in accordance with Indian GAAP under
 historic cost convention. GAAP enjoins adherences of mandatory
 accounting standards prescribed by the Companies (Accounting Standards)
 Rules, 2006, guidelines issued by SEBI and specific provisions of
 Companies Act 1956 on disclosure & accounting exigencies.
 
 To comply with GAAP, estimate and assumptions are made for factors
 affecting balances of year end assets & liabilities and disclosure of
 contingent liabilities. Such estimates change from time to time
 according to situation and appropriate changes are made with the
 knowledge of circumstances warranting such changes. Material changes
 are reported in notes to accounts including disclosures of financial
 impact thereof.
 
 All assets and liabilities have been classified as current or
 non-current as per the Company''s normal operating cycle and other
 criteria set out in revised Schedule VI to the Companies Act 1956.
 
 b.  Fixed Assets and Depreciation/Amortisation (Tangible & Intangible):
 
 Fixed assets are stated at cost less accumulated depreciation and
 impairment losses. Cost comprises the purchase price and any directly &
 indirectly attributable expense of bringing the asset to its working
 condition for its intended use including expenses on startup,
 commissioning, trial run and experimental production.
 
 Any income generated during project implementation is reduced from
 project cost.
 
 - Depreciation on Fixed Assets at factory locations have been
 provided for on straight line method at rates specified in schedule XIV
 of the Companies Act 1956, and the same at non factory locations have
 been provided on written down value method at the rates specified in
 the aforesaid Schedule.
 
 - No depreciation has been provided on leasehold land, which are
 either for a period of 999 years or of perpetual nature. Relevant
 assets will be amortised in the year of termination of lease-deed, if
 occurs.
 
 - The date of commencement of commercial production is identified
 with the date of attainment of ability of the plant to operate
 commercially ignoring delay in commencement of actual production, if
 any, caused by statutory / regulatory hindrances including delay in
 approval of sample.
 
 - Expenditure incurred on account of product development is
 capitalized as intangible assets. The same is amortised on straight
 line method over a period of 10 years from the year of completion of
 development.
 
 - Patents acquired from external sources are treated as intangible
 assets which are amortized on straight line method over a period of 10
 years from the year of acquisition.
 
 - Furniture & Fixture installed in plantation is depreciated on
 straight line basis during the lease period of land under plantation.
 
 c.  Impairment of Assets:
 
 i.  The Company identifies impairable tangible fixed assets at the
 year-end in term of cash generating unit concept for the purpose of
 arriving at impairment loss thereon being the difference between the
 book value and recoverable value of relevant assets if indication of
 impairment exists within the meaning of para 5 to 13 of AS-28 issued by
 ICAI. Impairment loss if any when crystallizes is charged against
 revenue of the year.
 
 ii.  Intangible assets are subjected to periodic test of impairment on
 asset specific perspective in terms of para-83, AS-26.
 
 d.  Investments:
 
 Investments being of long-term in nature, are held at cost.
 
 e.  Inventory:
 
 Stocks are valued at lower of cost or net realizable value. Cost is
 determined as follows:
 
 Raw materials, Packing materials, stores & Spares At cost computed on
 moving average basis.
 
 Work-in-process At cost of input plus overhead. Upto the stage of
 completion.
 
 Finished goods At cost of input plus appropriate overhead.
 
 f.  Plantation Accounting:
 
 Regarding plantation of agro based input undertaken by the company in
 joint venture with a third party plantation period wherein extend in
 years and yield there-from augment with repeat cultivation, entire
 annual recurring & non- recurring cost is charged in the year of
 incurrence to plantation in progress account maintained in terms of
 year of procurement of sapling/area, relevant plantation relates to.
 
 Plantation in progress (forming part of capital work-in-progress) is
 capitalized in the year the area, the plantation relates to starts
 yielding output. The capitalized sum is amortized over the residual
 period of lease.
 
 Plantation cost proving higher than realisable value of the output in
 initial years of harvesting, final output is carried at realizable
 value, leaving the excess of cost over realizable value for deferred
 amortization against annual plantation cost over remaining period of
 lease of land under plantation.
 
 g.  Research and Development Expenses:
 
 Scientific research expenses are charged to the profit & loss account
 in the year in which the expenses are incurred.  Development expenses
 when duly measurable for attribution in specific context of intangible
 asset are capitalized as stated in 2(b) above on account of intangible
 asset for intended uses subject to technical feasibility of completing
 the asset with adequacy of technical, financial & other resources in
 the custody of company to complete the development & it''s generation of
 further economic benefit. Otherwise, the same is charged to revenue.
 
 h.  Retirement Benefits:
 
 Liabilities in respect of retirement benefits to employees are provided
 for as follows: - Defined Benefit Plans:
 
 - Leave salary of employees on the basis of actuarial valuation as
 per AS 15 (revised).
 
 - Gratuity liability on the basis of actuarial valuation as per AS 15
 (revised) Defined Contribution Plans.
 
 - Liability for superannuation fund on the basis of the premium paid
 to the Life Insurance Corporation of India in respect of employees
 covered under Superannuation Fund Policy.
 
 - Provident fund & ESI on the basis of actual liability accrued and
 paid to trust / authority.
 
 i.  Recognition of Income and expenses:
 
 - Sales and purchases are accounted for on the basis of passing of
 title to the goods.
 
 - Sales comprise of sale price of goods including excise duty but
 exclude trade discount, VAT and sales tax.
 
 - Income from research & development services extended is accounted
 for in respect of the period, relevant service relate to.
 
 - Exports subsidy is accounted for on the basis of receipt of
 licence.
 
 - All items of incomes and expenses have been accounted for on
 accrual basis.
 
 j. Income Tax and Deferred Tax:
 
 The liability of company is estimated considering the provision of the
 Income Tax, 1961. Deferred tax is recognized subject to the
 consideration of prudence, on time differences being the difference
 between taxable income and accounting income that originate in one
 period and capable of reversal in one or more subsequent periods in due
 cognizance of AS-22.
 
 k. Forward Contract and option in foreign currency:
 
 Gains or loss on forward exchange contracts to hedge overseas exposures
 against adverse currency fluctuation under mark to market are computed
 by multiplying foreign currency amount of forward exchange contract by
 the difference between the forward rate available at the reporting date
 for the remaining contract yet to mature and contracted forward rate.
 
 In case of gain in such contract, lying unrecognized, a provision for
 the amount is created in accounts.
 
 l. Contingent Liabilities:
 
 Disputed liabilities and claims against the company including claims
 raised by fiscal authorities are provided in accounts unless no
 reliable estimate can be made of the amount of obligation or
 possibility of future cash flow is remote.  Otherwise the same is
 disclosed by way of notes to accounts.  
 
 m. Foreign Currency Translation:
 
 Foreign branches/offices are treated as integral operation as defined
 under AS-11 (Revised). Revenue items have been converted at the simple
 average of monthly exchange rates prevailing during the year. Fixed
 assets have been converted at the rates prevailing on dates of purchase
 of overseas assets. Outside liabilities and assets other than fixed
 assets are converted at the year-end exchange rate. Exchange gain or
 loss arising out of above is charged to profit & loss account.
 
 - Transactions in foreign currencies are recognized at rate of
 overseas currency ruling on the date of transactions.  Gain / Loss
 arising on account of rise or fall in overseas currencies vis-a-vis
 reporting currency between the date of transaction and that of payment
 is charged to profit & loss account.
 
 - Increase / decrease in foreign currency loan on account of exchange
 fluctuation is debited / credited to profit and loss account.
 
 - Impact of exchange fluctuation is separately disclosed in notes to
 accounts.  
 
 n. Government Grants:
 
 Project capital subsidy is credited to shareholder''s funds as capital
 reserve.
Source : Dion Global Solutions Limited
Quick Links for freseniuskabioncology
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.