GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Goodwill and livestock
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Wasting assets and expenditure on research and development
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Forests, plantations and similar regenerative natural resources
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All of the above
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Detailed explanation-1: -To which assets, AS 6 Depreciation Accounting is not applicable ? (i) forest, plantations and similar regenerative natural resources. (ii) wasting assets including expenditure on the exploration for and extraction of minerals, oils, natural gas and similar non-regenerative resources.
Detailed explanation-2: -AS-6 deals with depreciation accounting and applies to all depreciable assets, except .
Detailed explanation-3: -Accounting standard (AS) 6, Depreciation accounting, was issued by the ICAI in November 1982. In accounting term, depreciation is defined as the reduction of recorded cost of fixed asset in a systematic manner until the value of the asset become zero or negligible.
Detailed explanation-4: -Tangible assets that can be depreciated Not all tangible assets are depreciated over time-only those that have a useful life for your business of more than one year. For example, stock and inventory will not typically be retained by your business for more than a year.