Accounting Standard 6: Depreciation Accounting
Accounting Standard 6 (AS-6) specifically deals with the accounting treatment of depreciation.
- The primary objective of AS-6 is to ensure that the cost of a depreciable asset is systematically allocated over its useful life.
- It outlines the methods for calculating and recording depreciation, focusing on the systematic and rational allocation of the asset's depreciable amount.
- Key aspects covered include the definition of depreciation, recognition criteria, depreciable amount, useful life, and disclosure requirements related to depreciation.
Therefore, Accounting Standard 6 is meant for Depreciation Accounting.
Important Questions from Indian Accounting Standards and IFRS
The accounting standard AS3 (Revised) has become mandatory w.e.f. accounting periods beginning from 01-04-2001 for which of the following enterprise?
Match List I with List II
Choose the correct answer from the options given below:List I
List II
A.
Ind - AS : 1
I.
Provisions, Contingent Liabilities and Contingent Assets
B.
Ind - AS : 29
II.
Consolidated Financial Statements
C.
Ind - AS : 37
III.
Presentation of Financial Statements
D.
Ind - AS : 110
IV.
Financial reporting in Hyperinflationary Economies
The sources of the Indian GAAP (IGAAP) include:
A. Indian Companies Act, 2013
B. Notifications issued by Ministry of Finance
C. Accounting standards
D. ICAI's pronouncements
Choose the correct answer from the options given below:
Which of the following events after the balance sheet date would normally qualify as adjusting events according to AS-4 (Events after balance sheet date)?
(A) The insolvency of a customer on the balance sheet date
(B) A decline in the market value of investments
(C) The declaration of an ordinary dividend
(D) The determination of the cost of assets purchased before the balance sheet date
Choose the most appropriate answer from the options given below:
Match List I with List II:
List- I
Accounting Standard
List – II
Description
A.
Ind - AS : 1 (I)
Investments in Associates and Jot ventures B.
Ind - AS : 8 (II)
Presentation of Financial Statements C.
Ind - AS : 28 (III)
Interim Financial Reporting D.
Ind - AS : 34 (IV)
Accounting policies. changes in Accounting Estimates and Errors
Choose the correct answer from the options given below -
