FRS15: Tangible Fixed Assets became mandatory for all periods
ending on or after 23 March 2000. This standard sets out the
principles for the measurement, valuation and depreciation of fixed
assets. It describes the circumstances in which subsequent
expenditure on an asset either should be recognised in the profit
and loss account as it is incurred or capitalised and then
depreciated. This does not correspond with the capital/revenue
distinction for tax purposes. For tax purposes it is necessary to
ascertain the nature of the expenditure and then, for allowable
revenue deductions, to follow the timing of recognition shown in
the accounts.
The following paragraphs describe the accounting and tax
adjustments which have to be made to comply with FRS15.
