Section 67 in The Companies (Accounting Standards) Rules, 2006
67. If the related asset is measured using the cost model:
(a)subject to (b), changes in the liability should be added to, or deducted from, the cost of the related asset in the current period.(b)the amount deducted from the cost of the asset should not exceed its carrying amount. If a decrease in the liability exceeds the carrying amount of the asset, the excess should be recognised immediately in the statement of profit and loss.(c)if the adjustment results in an addition to the cost of an asset, the enterprise should consider whether this is an indication that the new carrying amount of the asset may not be fully recoverable. If it is such an indication, the enterprise should test the asset for impairment by estimating its recoverable amount, and should account for any impairment loss, in accordance with AS 28.
