Page 48 - IC46 addendum

General Insurance Accounts (IC-46)

c. Useful life refers to the expected time that the
asset will be productive for its expected
purpose.

d. Placed in service refers to the month and
year when the asset is first being used.

e. All are correct.

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

a. Schedule II prescribes indicating useful lives
of various assets instead of rates to be
applied.

b. Useful lives has been prescribed for tangible
assets.

c. No useful life has been prescribed for
intangible assets where any specific
accounting standard has been notified for
intangible asset.

d. Depreciable amount of an asset is the cost
of an asset or other amount substituted for
cost less residual value.

e. Companies are permitted to follow same
useful lives.

7. Which statements are correct in respect

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