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a. A measure of the wearing out, consumption or
other loss of value of depreciable asset arising
from use, effluxion of time or obsolescence
through technology and market changes.
b. Allocation of a portion of fixed assets.
c. A system of accounting, which aims to
distribute the cost or other basic value of
tangible capital assets less salvage over the
estimated useful life of the unit in a systematic
and rational manner.
d. It is a process of allocation and not of
valuation.
e. Depreciation is the process of allocating cost
of fixed asset over it is estimated useful life
in a rational and systematic manner.
3. Depreciation as defined in Companies
Act 2013, in schedule II:
a. A measure of the wearing out, consumption
or other loss of value of depreciable asset
arising from use, effluxion of time or
obsolescence through technology and market
changes.
b. Allocation of a portion of fixed assets.
c. A system of accounting, which aims to
distribute the cost or other basic value of
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