AS 6 Depreciation Accounting
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ICAI, AS 6 Depreciation Accounting, help to understand of depreciation in industry. From general and accounting point of view. As per company act 2013
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As – 6 Depreciation Accounting
THIS IS ALL ABOUT ACCOUNTING STANDARD - 6 I.E., DEPRECIATION ACCOUNTING.
THE RULES AND REGULATIONS TO BE FOLLOWED WHILE CALCULATING DEPRECIATION OF A DEPRECIABLE FIXED ASSET.
As 6-depreciation accounting
This document discusses 9 issues related to the accounting standard AS 6 on depreciation accounting in India. It addresses questions on which assets depreciation does not apply to, factors considered in computing depreciation, circumstances impacting useful life, requirements for changing depreciation methods, implications of asset revaluation, and more. Key points covered include that depreciation must be provided annually regardless of increased market value, schedules may require higher depreciation rates if useful life is shorter than estimated, and revalued assets require depreciation based on remaining useful life, not scheduled rates.
Depreciation accounting ppt @ bec doms 2009
Depreciation accounting is used to allocate the cost of a tangible asset over its estimated useful life. It is a non-cash expense that is deducted each year from the profit and loss account. There are two main methods for calculating depreciation - the straight line method, which evenly allocates the cost minus the estimated scrap value over the life of the asset, and the diminishing balance method, which allocates a higher proportion of depreciation in early years. The accounting treatment is to debit the depreciation expense each period and credit the accumulated depreciation account.
Accounting standard 6 Presentation
This document summarizes Accounting Standard 6 (AS-6) on depreciation accounting. It defines depreciation and outlines the key features and causes of depreciation. It discusses depreciable assets and the applicability of AS-6. The document also explains the different methods for calculating depreciation and conditions for changing the depreciation method. It provides guidance on the disclosure requirements for depreciation as per AS-6 and concludes with important points about the standard.
As 06
This document outlines Accounting Standard 6 on depreciation accounting. It defines depreciation as the wearing out or loss of value of an asset due to use or age. It defines depreciable assets as those used for over a year in production, supply of goods/services, or administration. The depreciable amount is the historical cost less estimated residual value. Depreciation must be allocated systematically over the useful life of the asset using methods like straight-line or written down value. Disclosures include historical costs, depreciation for the period, accumulated depreciation, methods used, and rates if different from statutory rates.
8 depreciation
This document discusses various methods of depreciation for fixed assets. It defines depreciation as the allocation of the cost of a fixed asset over its useful life. Common causes of depreciation include physical deterioration, obsolescence, depletion, and passage of time. Popular depreciation methods include straight-line, reducing balance, revaluation, units-of-output, double-declining balance, and sum-of-the-years'-digits. Each method calculates depreciation expense differently, with advantages and disadvantages to consider.
Depreciation 2
1. The document discusses various methods of accounting for depreciation of fixed assets, including straight-line, units-of-production, and declining balance methods.
2. It explains that depreciation involves allocating the cost of tangible assets over the periods they are expected to provide benefits.
3. Key factors that determine depreciation expenses each year include initial asset cost, estimated residual value, useful life, and the depreciation method used.
Depreciation
This document discusses depreciation, depletion, and amortization. It defines depreciation as the decline in value of fixed assets due to use, time, or obsolescence. Depreciation is a non-cash expense that matches the cost of an asset with the periods it benefits. Causes of depreciation include wear and tear, expiration of legal rights, and obsolescence. The document also discusses depletion of natural resources and amortization of intangible assets over their useful lives. Common depreciation methods like straight-line and written down value are also summarized.
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As – 6 Depreciation Accounting
THIS IS ALL ABOUT ACCOUNTING STANDARD - 6 I.E., DEPRECIATION ACCOUNTING.
THE RULES AND REGULATIONS TO BE FOLLOWED WHILE CALCULATING DEPRECIATION OF A DEPRECIABLE FIXED ASSET.
As 6-depreciation accounting
This document discusses 9 issues related to the accounting standard AS 6 on depreciation accounting in India. It addresses questions on which assets depreciation does not apply to, factors considered in computing depreciation, circumstances impacting useful life, requirements for changing depreciation methods, implications of asset revaluation, and more. Key points covered include that depreciation must be provided annually regardless of increased market value, schedules may require higher depreciation rates if useful life is shorter than estimated, and revalued assets require depreciation based on remaining useful life, not scheduled rates.
Depreciation accounting ppt @ bec doms 2009
Depreciation accounting is used to allocate the cost of a tangible asset over its estimated useful life. It is a non-cash expense that is deducted each year from the profit and loss account. There are two main methods for calculating depreciation - the straight line method, which evenly allocates the cost minus the estimated scrap value over the life of the asset, and the diminishing balance method, which allocates a higher proportion of depreciation in early years. The accounting treatment is to debit the depreciation expense each period and credit the accumulated depreciation account.
Accounting standard 6 Presentation
This document summarizes Accounting Standard 6 (AS-6) on depreciation accounting. It defines depreciation and outlines the key features and causes of depreciation. It discusses depreciable assets and the applicability of AS-6. The document also explains the different methods for calculating depreciation and conditions for changing the depreciation method. It provides guidance on the disclosure requirements for depreciation as per AS-6 and concludes with important points about the standard.
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This document outlines Accounting Standard 6 on depreciation accounting. It defines depreciation as the wearing out or loss of value of an asset due to use or age. It defines depreciable assets as those used for over a year in production, supply of goods/services, or administration. The depreciable amount is the historical cost less estimated residual value. Depreciation must be allocated systematically over the useful life of the asset using methods like straight-line or written down value. Disclosures include historical costs, depreciation for the period, accumulated depreciation, methods used, and rates if different from statutory rates.
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1. The document discusses various methods of accounting for depreciation of fixed assets, including straight-line, units-of-production, and declining balance methods.
2. It explains that depreciation involves allocating the cost of tangible assets over the periods they are expected to provide benefits.
3. Key factors that determine depreciation expenses each year include initial asset cost, estimated residual value, useful life, and the depreciation method used.
Depreciation
This document discusses depreciation, depletion, and amortization. It defines depreciation as the decline in value of fixed assets due to use, time, or obsolescence. Depreciation is a non-cash expense that matches the cost of an asset with the periods it benefits. Causes of depreciation include wear and tear, expiration of legal rights, and obsolescence. The document also discusses depletion of natural resources and amortization of intangible assets over their useful lives. Common depreciation methods like straight-line and written down value are also summarized.
Depreciation
Depreciation is the gradual decrease in the economic value of capital assets over time due to wear and tear or obsolescence. It is a cost allocation process that matches the cost of operational assets with the periods benefited from their use. There are several methods for calculating depreciation for accounting and tax purposes, including straight-line, sum-of-the-years digits, and sinking fund methods. Tax systems also have specific rules around capital allowances, tax lives of assets, additional first-year depreciation deductions, and real property depreciation.
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The document discusses various methods for calculating depreciation according to Indian accounting standards, including straight-line, declining-balance, half-year convention, and user-defined methods. It also covers calculating depreciation for additional assets, multi-shift operations, and blocks of assets.
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This document discusses depreciation accounting. It defines depreciation accounting as allocating the cost of a tangible capital asset over its estimated useful life. Depreciation represents the gradual conversion of the asset's capitalized cost into an expense that is allocated to different periods. The document discusses different terms used for allocating costs of different asset types, such as depreciation for physical assets, depletion for natural resources, and amortization for intangible assets. It also discusses factors that influence the amount of depreciation charged each year, such as original cost, estimated useful life, additions made to the asset, and estimated residual value.
As 6
This document discusses depreciation accounting standards in India. It defines depreciation as the wearing out, consumption or loss of value of an asset due to use, time, or obsolescence. Depreciable assets have a limited useful life. The document outlines the causes and needs for depreciating assets, and factors to consider such as cost, useful life, and residual value. It describes common depreciation methods like straight-line and written down value, and notes disclosure requirements for depreciation policies in financial statements.
Depreciation
Depreciation is the permanent and gradual decline in the value of fixed assets over time due to wear and tear, effluxion of time, or obsolescence. It is a process of allocating the cost of a fixed asset over its useful life and is based on factors like the asset's cost, estimated useful life, and estimated residual value. Depreciation is calculated using methods like the straight-line method, diminishing balance method, or units of production method and is important for determining accurate profits, financial position, and asset values.
PPT on Depreciation.ppt
This document summarizes the key aspects of Accounting Standard AS-6 on depreciation accounting in India. It defines depreciation and explains how it is allocated over the useful life of a depreciable asset. It covers the applicability of AS-6, methods of calculating depreciation, factors affecting depreciation, and disclosure requirements regarding depreciation policies and amounts in financial statements. The document also discusses accounting treatments for changes in depreciation methods or estimates of useful life.
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Depreciation refers to the reduction in value of fixed assets over their useful life. Fixed assets include property, plant, equipment, and machinery used in a business for over one year. Depreciation is calculated through depreciation expense and accumulated depreciation accounts to allocate the cost of the fixed asset over its life. There are two main methods for calculating depreciation - straight-line depreciation which uses equal amounts over the asset's life, and other methods which may use accelerated amounts over time.
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This document defines and explains various accounting concepts related to asset valuation over time. It defines depreciation as a non-cash expense that reduces the value of an asset over its useful life. It then describes different depreciation calculation methods like straight-line, sum-of-years digits, and declining balance. The document also discusses amortization, write-offs, and sinking funds which are methods used to allocate capital costs over a period of time. Examples are provided to illustrate how to calculate depreciation and amortization using different formulas and rates.
Accounts depriciation ppt
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Depreciation accounting
Depreciation is the allocation of the cost of tangible and intangible assets over their useful lives. There are different methods for calculating depreciation under accounting standards in India (AS-6), US GAAP, and IFRS. Key differences include how revaluations are treated and whether changes in estimates are considered changes in accounting policies. Uniformity in depreciation accounting standards worldwide could improve comparability between companies.
Provision For Depreciation
1) Depreciation is the systematic allocation of the cost of a fixed asset over its useful life to match the cost with the economic benefits generated by the asset.
2) Without depreciation accounting, the entire cost of a fixed asset would be recognized in the year of purchase, providing a misleading view of an entity's profitability.
3) The straight-line method is the simplest way to calculate depreciation by subtracting salvage value from original cost and dividing by estimated useful life in years.
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This document defines depreciation as the reduction in the value of an asset due to wear and tear, usage, or obsolescence over time. It discusses the allocation of an asset's cost over its useful life, with depreciation being a non-cash expense. Various methods of calculating depreciation are presented, along with factors that determine the depreciation amount such as the asset's cost, useful life, and salvage value. The document also notes disclosure requirements for depreciation in financial statements and regulations around changing depreciation methods.
Depriciation
depriciation its meaning and definition, features, methods of charging depriciation, and advantages and disadvantages
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Depreciation is the allocation of the cost of a tangible asset over its useful life. It is a non-cash expense that reduces the value of the asset over time due to wear and tear, age, and obsolescence. There are two main methods for calculating depreciation - the straight-line method and the written-down value method. The straight-line method allocates depreciation evenly over the asset's useful life, while the written-down value method allocates a higher percentage of depreciation in early years that decreases over time. Depreciation is required for accounting purposes to show the true value of assets and provide funds for asset replacement.
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This document provides an overview of accounting for depreciation as per AS-6. It defines depreciation as a permanent decrease in the value of a fixed asset due to use, age, or obsolescence. Depreciation is a non-cash expenditure used to allocate the cost of a fixed asset over its useful life. The document outlines the objectives and importance of providing depreciation, the causes and basic factors used to calculate depreciation, and common methods for calculating depreciation including fixed installation, diminishing balance, and annuity methods. It also defines depreciable assets and disclosure requirements regarding depreciation accounting policies under AS-6.
Depreciation ppt 2013
The document discusses two methods of depreciation: the straight line method and the written down value method. The straight line method charges a fixed amount of depreciation each year based on the original cost of the asset divided evenly over its estimated useful life. It is simple to calculate but ignores changes in the asset's value over time. The written down value method has depreciation amounts that decline each year, in line with tax laws, but the asset value cannot be reduced to zero. The straight line method spreads costs more evenly but the written down value method better reflects changing repair and maintenance costs over an asset's lifetime.
Depreciation 3
The document discusses accounting principles related to depreciation of assets. It covers calculating depreciation expense using different methods, revising estimates of useful life and residual value, changing the depreciation method, and revaluing assets. Disclosure requirements for depreciation policies and amounts in financial statements are also reviewed under Indian, US, and international accounting standards.
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This document discusses depreciation and plant and equipment assets over multiple pages. It defines depreciation as allocating the cost of tangible assets over their period of use. It also discusses the matching principle of offsetting revenue with the costs of services provided. The document covers categories of plant and equipment assets, determining their costs, capital vs operating expenditures, disposal of assets, and gains/losses. It also defines intangible assets such as goodwill and patents.
Ise 307- chapter 9
- The document discusses depreciation and its treatment for accounting (book depreciation) and tax purposes (tax depreciation).
- It defines depreciation as the reduction in value of an asset due to usage, age, and obsolescence. For accounting, depreciation is allocated systematically over the useful life of the asset, while for tax purposes, depreciation methods allow for faster write-offs.
- Common depreciation methods discussed include straight-line, declining balance, and units-of-production, as well as the Modified Accelerated Cost Recovery System (MACRS) used for tax depreciation since 1986.
Depreciation accounting ppt @ bec doms 2009
Depreciation accounting is used to allocate the cost of a tangible asset over its estimated useful life. It is a non-cash expense that is deducted each year from the profit and loss account. There are two main methods for calculating depreciation - the straight line method, which evenly allocates the cost minus the estimated scrap value over the life of the asset, and the diminishing balance method, which allocates a higher proportion of depreciation in early years. The accounting treatment is to debit the depreciation expense each period and credit the accumulated depreciation account.
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This document discusses depreciation accounting standards in India. It defines depreciation as the wearing out, consumption or loss of value of an asset due to use, time, or obsolescence. Depreciable assets have a limited useful life. The document outlines the causes and needs for depreciating assets, and factors to consider such as cost, useful life, and residual value. It describes common depreciation methods like straight-line and written down value, and notes disclosure requirements for depreciation policies in financial statements.
Depreciation
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This document summarizes the key aspects of Accounting Standard AS-6 on depreciation accounting in India. It defines depreciation and explains how it is allocated over the useful life of a depreciable asset. It covers the applicability of AS-6, methods of calculating depreciation, factors affecting depreciation, and disclosure requirements regarding depreciation policies and amounts in financial statements. The document also discusses accounting treatments for changes in depreciation methods or estimates of useful life.
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Depreciation refers to the reduction in value of fixed assets over their useful life. Fixed assets include property, plant, equipment, and machinery used in a business for over one year. Depreciation is calculated through depreciation expense and accumulated depreciation accounts to allocate the cost of the fixed asset over its life. There are two main methods for calculating depreciation - straight-line depreciation which uses equal amounts over the asset's life, and other methods which may use accelerated amounts over time.
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This document defines and explains various accounting concepts related to asset valuation over time. It defines depreciation as a non-cash expense that reduces the value of an asset over its useful life. It then describes different depreciation calculation methods like straight-line, sum-of-years digits, and declining balance. The document also discusses amortization, write-offs, and sinking funds which are methods used to allocate capital costs over a period of time. Examples are provided to illustrate how to calculate depreciation and amortization using different formulas and rates.
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Depreciation is the allocation of the cost of tangible and intangible assets over their useful lives. There are different methods for calculating depreciation under accounting standards in India (AS-6), US GAAP, and IFRS. Key differences include how revaluations are treated and whether changes in estimates are considered changes in accounting policies. Uniformity in depreciation accounting standards worldwide could improve comparability between companies.
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1) Depreciation is the systematic allocation of the cost of a fixed asset over its useful life to match the cost with the economic benefits generated by the asset.
2) Without depreciation accounting, the entire cost of a fixed asset would be recognized in the year of purchase, providing a misleading view of an entity's profitability.
3) The straight-line method is the simplest way to calculate depreciation by subtracting salvage value from original cost and dividing by estimated useful life in years.
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This document defines depreciation as the reduction in the value of an asset due to wear and tear, usage, or obsolescence over time. It discusses the allocation of an asset's cost over its useful life, with depreciation being a non-cash expense. Various methods of calculating depreciation are presented, along with factors that determine the depreciation amount such as the asset's cost, useful life, and salvage value. The document also notes disclosure requirements for depreciation in financial statements and regulations around changing depreciation methods.
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Depreciation is the allocation of the cost of a tangible asset over its useful life. It is a non-cash expense that reduces the value of the asset over time due to wear and tear, age, and obsolescence. There are two main methods for calculating depreciation - the straight-line method and the written-down value method. The straight-line method allocates depreciation evenly over the asset's useful life, while the written-down value method allocates a higher percentage of depreciation in early years that decreases over time. Depreciation is required for accounting purposes to show the true value of assets and provide funds for asset replacement.
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This document provides an overview of accounting for depreciation as per AS-6. It defines depreciation as a permanent decrease in the value of a fixed asset due to use, age, or obsolescence. Depreciation is a non-cash expenditure used to allocate the cost of a fixed asset over its useful life. The document outlines the objectives and importance of providing depreciation, the causes and basic factors used to calculate depreciation, and common methods for calculating depreciation including fixed installation, diminishing balance, and annuity methods. It also defines depreciable assets and disclosure requirements regarding depreciation accounting policies under AS-6.
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The document discusses two methods of depreciation: the straight line method and the written down value method. The straight line method charges a fixed amount of depreciation each year based on the original cost of the asset divided evenly over its estimated useful life. It is simple to calculate but ignores changes in the asset's value over time. The written down value method has depreciation amounts that decline each year, in line with tax laws, but the asset value cannot be reduced to zero. The straight line method spreads costs more evenly but the written down value method better reflects changing repair and maintenance costs over an asset's lifetime.
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- The document discusses depreciation and its treatment for accounting (book depreciation) and tax purposes (tax depreciation).
- It defines depreciation as the reduction in value of an asset due to usage, age, and obsolescence. For accounting, depreciation is allocated systematically over the useful life of the asset, while for tax purposes, depreciation methods allow for faster write-offs.
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Depreciation accounting ppt @ bec doms 2009
Depreciation accounting is used to allocate the cost of a tangible asset over its estimated useful life. It is a non-cash expense that is deducted each year from the profit and loss account. There are two main methods for calculating depreciation - the straight line method, which evenly allocates the cost minus the estimated scrap value over the life of the asset, and the diminishing balance method, which allocates a higher proportion of depreciation in early years. The accounting treatment is to debit the depreciation expense each period and credit the accumulated depreciation account.
Depreciation
Meaning
Features of depreciation
Causes of depreciation
Need & importance of depreciation
Factors determining the amount of depreciation
Methods of allocating depreciation
Illustration
Exercise
Accounting for depreciation 1
This document provides an overview of depreciation accounting. It defines depreciation and related terms like depletion, amortization, and obsolescence. It discusses the causes and objectives of charging depreciation. The document also explains factors affecting depreciation amounts and relevant accounting principles. Finally, it describes the straight line and written down value methods for allocating depreciation over the useful life of an asset.
Methods of charging Depreciation
Methods of charging Depreciation
There are many methods of applying depreciation, some of the main methods are as follows:
(1) Fixed Instalment Method / Straight Line Method
(2) Written Down Value / Diminishing Balance Method
(3) Annuity Method
(4) Depreciation Fund Method
(5) Insurance Policy Method
(6) Revaluation Method
(7) Depletion Unit or Production Unit Method
(8) Machine Hour Method
(9) The sum of the years Digits Method
(10) The use or Mileage Method
(11) Group Depreciation Method
Here we will study only fixed installment method and amortizing method, which are most popular.
Straight Line Method or Fixed Instalment Method
There are many names of this method, such as—
(i) Straight Line Method,
(ii) Original Cost Method,
(iii) Equal Instalment Method,
(iv) Fixed Instalment Method. Fixed Instalment Method. Under this method, depreciation is calculated at a fixed percentage on the original cost of the asset every year. Obviously, there will be the same amount of depreciation each year. That is why it is called a fixed instalment or ‘prime cost’ method. If the depreciation is marked on the graph paper and all the points are joined then a straight line will be formed. That’s why it is called ‘straight line method’ or straight line method.
AssignmentComplete the following problems You must show your.docx
Assignment:
Complete the following problems: You must show your work and complete both problems to get any credit!
1) (Chapter 10) Identify which of the following costs are fixed and which are variable:
a) Electricity for machinery in a plant
b) Sales commission
c) Property taxes on a factory building
d) Property taxes on an administrative building
e) Factory fire insurance
f) Regular maintenance on machinery and equipment
g) Wages paid to temporary or seasonal workers
h) Salaries paid to design engineers
i) Heat and air conditioning in a plant
j) Basic raw materials used in production
2) (Chapter 11) A machine costing $80,000 to buy and $6,000 per year to operate will save mainly labor expenses in packaging over five years. The anticipated salvage value of the machine at the end of five years is $4,000.
a) If a 12% return of investment (rate of return) is desired, what is the minimum required annual savings in labor from this machine?
b) If the service life is four years instead of five, what is the minimum required annual savings in labor for the firm to realize a 12% return on investment?
c) If the annual operating cost increases 10%, say from $6,000 to $6,600, what will happen to the answer in (a)?
Formatting:
Text Size: All of the text in this assignment needs to be set in 10 or 12-point size. Please resist the temptation to mix and match point sizes. If you doubt your applications intentions, just select all of your text and insure that it is in 10 or 12-point size.
Margins: The right and left side can be set for ½” (0.5) margins. Set the top and bottom margins to one (1”). The only text that ends up on the outside of the one-inch margin is the page number.
Name Block: Place the name block in the upper left corner of the page. In MS Excel, use the left side cells. In this class the name block only needs to be on the first page. Put your name first, then the class title and then the date. Example:
Park 9
Accounting for Depreciation
Depreciation
Depreciation is the loss of value of fixed assets over time.
Depreciation accounting is to account for the cost of fixed assets in a pattern that matches their decline in value over time.
The process of depreciating an asset requires that we know some things:
What is the cost of the asset?
What is the depreciable life of the asset?
What is the asset’s value at the end of its useful life?
What method of depreciation do we choose?
Depreciable Property
A depreciable asset is property for which a firm may take depreciation deductions against income.
U.S tax law requires the depreciable property must:
Be used in business or held for the production of income
Have a definite service life, which must be longer than 1 year
Be something that wears out, decays, gets used up, becomes obsolete, or loses value from natural causes
Depreciable Property
Depreciable property includes buildings, machinery, equipment, vehicles, a ...
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- 1. FINANCIAL ACCOUNTING - PRESENTATION Topic : AS 6 – Depreciation Accounting Prepared and Presented by Prathmesh
- 2. AS – 6 DEPRECIATION ACCOUNTING 1. Introduction – AS 6 2. Meaning and Definition 3. Features of Depreciation a) Decline in value b) Loss of value of assets c) Continuing process d) Expired cost e) Non-cash expense f) Writing-off capital expenditure Contd…
- 3. AS – 6 DEPRECIATION ACCOUNTING 5. Basis for calculating Depreciation a) Historical cost b) Estimated useful life c) Estimated residual or scrap value 6. Methods of charging Depreciation a) Straight Line Method / Fixed Instalment method b) Written Down Value Method / Reducing Value method c) Sinking Fund method d) Insurance Policy method e) Sums of the digit method f) Revaluation method g) Depletion method h) Machine Hour rate method i) Replacement method Contd…
- 4. AS – 6 DEPRECIATION ACCOUNTING (A) Straight Line method (SLM) Formula: Amount of Depreciation = Cost – Estimated Scrap Value Estimated Life Depreciation Rate = Amount of Depreciation X 100 Cost Contd… F. Year Rate of Dep Opening Balance Dep for the Year Closing WDV 2011-12 10% 125,000 12,500 112,500 2012-13 10% 112,500 12,500 100,000 2013-14 10% 100,000 12,500 87,500 2014-15 10% 87,500 12,500 75,000 2015-16 10% 75,000 12,500 62,500
- 5. AS – 6 DEPRECIATION ACCOUNTING (B) Written Down Value Method (WDV) Formula: Amount of Depreciation = Cost – Estimated Scrap Value Estimated Life Depreciation Rate = 1 – (Residual price) ^ (1/n) X 100 Cost R = Rate of Depreciation (in %) n = Remaining useful life of the asset (in years) Residual Value = Scrap value at the end of useful life of the asset Cost = Cost of the asset/Written down value of the asset Contd… Year Rate of Dep Opening Balance Dep for the Year Closing WDV 2011-12 10% 125,000 12,500 112,500 2012-13 10% 112,500 11,250 101,250 2013-14 10% 101,250 10,125 91,125 2014-15 10% 91,125 9,113 82,012 2015-16 10% 82,012 8,201 73,811
- 6. AS – 6 DEPRECIATION ACCOUNTING 7. Applicability of depreciation to assets as per AS 6 a) Natural resources b) Wasting assets c) R&D d) Goodwill e) Livestock 9. Factors Affecting the amount Of Depreciation a) Cost of Asset b) Estimated Scrap value c) Estimated Useful life d) Legal Provisions Contd…
- 7. AS – 6 DEPRECIATION ACCOUNTING 9. Major Causes of Depreciation a) Wear and Tear b) Effusion of time c) Exhaustion d) Obsolescence e) Other causes 11. Advantages & Disadvantages a) Ascertainment of true profits b) Reporting of true and fair view c) Replacement of assets d) Savings in taxes Contd…
- 8. AS – 6 DEPRECIATION ACCOUNTING 11. Presentation in financial statement as per Companies Act 2013. 12. New Act – Comparison with Old act and Benefits a) Basis of depreciation b) Residual value c) Rates d) Component accounting e) Amortization of intangible assets.
- 9. AS – 6 DEPRECIATION ACCOUNTING 14. Benefits of new provisions a) Increase in govt. revenue b) True and fair view in financial statements c) Less dispute in classifications of assets d) More Transparency 15. Conclusion