Gross Block (Fixed Assets) Definition

Happy Frog Imagining the Concept of Gross Block of Fixed Assets

In the financial statements fixed assets are depicted under three blocks or groups as under:

1.     Gross

2.     Depreciation

3.     Net

Each of these blocks are further classified into:

1.     Amount standing at the beginning of the year (Opening Balance)

2.     Additions during the year

3.     Deletions (sold or disposed off) during the year

4.     Amount standing at the end of the year (Closing Balance)

‘Gross Block’ represents the original cost of acquisition of assets without adjusting or deducting depreciation for wear-and-tear.

Formula:

Gross Block (Fixed Assets) Formula

In conclusion gross block of fixed assets is the original cost, unadjusted for depreciation charge.