Section 72 in The Companies (Accounting Standards) Rules, 2006
72. Impairments or losses of items of property, plant and equipment, related claims for or payments of compensation from third parties and any subsequent purchase or construction of replacement assets are separate economic events and are accounted for separately as follows:
(a)impairments of items of property, plant and equipment are recognised in accordance with AS 28;(b)derecognition of items of property, plant and equipment retired or disposed of is determined in accordance with this Standard;(c)compensation from third parties for items of property, plant and equipment that were impaired, lost or given up is included in determining profit or loss when it becomes receivable; and(d)the cost of items of property, plant and equipment restored, purchased or constructed as replacements is determined in accordance with this Standard.Retirements
