FRS 15 Tangible Fixed Assets

FRS 15 (February 1999) (PDF)

FRS 15 was effective for accounting periods ending on or after 23 March 2000. It was withdrawn for accounting periods beginning on or after 1 January 2015, when FRS 102 became effective. 

FRS 15 sets out the principles of accounting for tangible fixed assets, with the exception of investment properties, which are dealt with in SSAP 19 'Accounting for investment properties'. The objective of the FRS is to ensure that tangible fixed assets are accounted for on a consistent basis.

Consistently with previous practice (as reflected, for example, in the Companies Act) the FRS permits a choice as to whether tangible fixed assets are stated at cost or at revalued amount. However, where an enterprise chooses to adopt a policy of revaluing some assets, all assets of the same class (that is, those with a similar nature, function or use) must be revalued. The FRS also contains requirements that ensure that the valuations are kept up to date.

FRS 15 incorporates many of the requirements of SSAP 12 'Accounting for depreciation' which it will supersede in due course. The FRS acknowledges that in a limited number of cases, no depreciation charge may be made on the grounds that it is immaterial. Where this is the case, or where depreciation is calculated on a basis that assumes that the useful economic life of an asset is longer than fifty years, the standard requires annual impairment reviews to be performed, to ensure that the carrying amount of the asset is not overstated.

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