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| Happy Frog Explaining Gross Block Fixed Assets |
A Place for Learning and Practicing "Value Investing" Taught by Benjamin Graham and Successfully Executed by Warren Buffett.
Sunday, December 18, 2016
Gross Block (Fixed Assets) Definition
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| 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:
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| Gross Block (Fixed Assets) Formula |
In conclusion
gross block of fixed assets is the original cost, unadjusted for depreciation
charge.
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