Page 92 - IC26 LIFE INSURANCE FINANCE

The depreciation on such addition may also be applied at the rate applied to the existing asset.

Where an addition or extension retains a separate identity and is capable of being used after the existing

asset is disposed of, depreciation should be provided independently on the basis of estimate of its own

useful life.

Where the historical cost of a depreciable asset has undergone a change due to increase or decrease in the

long term liability on account of exchange fluctuations, price adjustments, changes in duties or similar

factors, the depreciation on the revised unamortised depreciable amount should be provided prospectively

over the residual useful life of the asset.

This accounting standard is not applied on the following items.

 Forests and plantations

 Wasting assets

 Research and development expenditure

 Goodwill

 Live stock

Disclosure Requirements

a) The historical cost

b) Total depreciation for each class charged during the period

c) The related accumulated depreciation

d) Depreciation method used (Accounting policy)

e) Depreciation rates if they are different from those prescribed by the statute governing the enterprise

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