Page 47 - IC46 addendum

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4. Which statements are correct in respect
of depreciation accounting under the
Companies Act 2013?

a. As per new provisions depreciation must be
provided on the basis of useful life of asset.

b. The Companies Act 2013, has introduced a
component approach for accounting of
depreciation as envisaged in IND AS 16
relating to property, plant and equipment.

c. The term deposition includes amortisation.
d. The useful life or residual value of any specific

asset as notified for accounting purposes by
a regulatory authority constituted under an act
of Parliament shall be applied in calculating
the depreciation to be provided for such
asset irrespective of the requirements of the
schedule II.
e. All are correct.

5. Which statements are correct in respect
of depreciation accounting under the
Companies Act 2013?

a. Asset cost refers to the original value of asset
or depreciable cost.

b. Salvage value refers to the value of asset at
the end of its useful life.

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