As - 6

Statements of Accounting Standards (AS 6) Revised Depreciation Accounting The by-line is the text of the revise Accounting Standard (AS) 6, Depreciation Accounting, issued by the Council of the Institute of hired Accountants of India. Introduction 1. This Statement deals with derogation accountancy and applies to all depreciable assets, except the following items to which special considerations apply:â€" (i) forests, plantations and connatural regenerative natural resources; (ii) wasting assets including usance on the exploration for and extraction of minerals, oils, natural gas and similar non-regenerative resources; (iii) expenditure on research and development; (iv) goodwill; (v) stand up stock. This statement also does not apply to land unless it has a limited useful life for the enterprise. 2. Different bill policies for depreciation are adopted by different enterprises. Disclosure of accounting policies for depreciation followed by an enterprise is necessary to appreciate the opinion presented in the financial statements of the enterprise. Definitions 3. The following terms are employ in this Statement with the meanings specified: 3.

1 Depreciation is a stair of the wearing out, consumption or other loss of take to be of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of the depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortisation of assets whose useful life is predetermined. 3.2 Depreciable assets are assets which (i) are expected to be used during more than one accounting period; and (ii) sire a limited useful life; and (iii) are held by an enterprise for use in the production or add of goods and services, for rental to others, or for administrative purposes and not for the purpose of sales event in the ordinary... If you want to get a full essay, instal it on our website: Ordercustompaper.com

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