Incorporated in 1979, Sterlite Industries (India) Limited (SIIL) is a key-producer of copper and related products. It has set up a number of smelters and refineries. The company is also engaged in manufacturing various chemical products, such as, sulphuric acid and phosphoric acid. We present below the fixed assets schedule of Sterlite Industries:

Notes to Account related to intangibles are:

(i) Intangible Assets are stated at cost of acquisition less accumulated amortization.

(ii) Technical know-how is amortised over the useful life of the underlying plant.

(iii) Amortization is done on straight line basis. Software is amortised on straight line basis.

• Pass the necessary journal entries for the above adjustment.
• Is the above information enough for incredible financial reporting practices perspective?
• Which Ind-AS/IFRS apply to the above items? Does the above information comply with the latest accounting standards norms? Discuss.

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Nature of Fixed Assets Tangible Fixed Assets Land Buildings Buildings (Lease-Hold) Plant and Machinery Furniture and Fixtures Data Processing Equipment Office Equipment Electrical Fittings Vehicles Intangible Assets* Computer Software Technical Know-how Total: Previous Year Capital Work-in Progress (including Advances against Capital Expenditures) As at 01.04.2009 2,578.27 11.50 23.16 7.15 40.43 28.24 150.65 6.33 50.09 10.64 Gross Block 3.56 7.29 Addition/ Deductions Adjustments 10.74 - 52.45 0.30 0.54 0.73 0.53 2.59 | 5.55 2,778.07 101.67 2,76534 126.64 7.19 0.13 0.01 0.09 - 1.45 8.87 2.91 As at 31 03.04.200 68.67 161.39 6.33 2,623.53 11.67 23.69 7.79 50.62 11.78 9.11 7.29 Schedule 5 Fixed Assets Upto For the Depreciation/ Upto 31.03.2009 Year Adjustments 31.03.2010 2.87 Depreciation 12.05 2.62 0.31 4.04 31.99 2.48 1,110.57 138.58 6.71 0.62 17.08 1.79 2.84 0.35 2.39 1.02 0.34 1.21 2,98187 1,190.76 150.64 2,889.07 1,045.79 145.60 1.16 0.38 4.47 0.04 0.01 0.01 0.47 5.00 0.63 3.18 36.03 2.48 1,244.68 7.29 18.86 3.18 14.44 3.17 1.50 1.59 Net Block Before Impairment 65.49 125.36 3.85 1,378.85 As at As at As at Upto 31.03.2010 31.03.2010 31.03.2010 31.03.2009 4.38 4.83 4.61 36.18 8.61 7.61 5.70 Impair- ment 1,336.40 1.645.47 1,190.76 1,698.31 3.50 81.15 84.65 84.65 Net Block 65.49 121.86 3.85 1,298.70 4.38 4.83 4.61 (Rs Crore) 36.18 8.61 7.61 5.70 37.56 115.16 3.85 1,386.55 4.79 6.08 4.31 38.04 8.02 3.22 6.08 1,560.82 1,613.66 1,613.66 1,613.66 265,81 32.16