Page 49 - IC46 addendum

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of depreciation accounting under the
Companies Act 2013?
a. Useful life of an asset is considered to be the
period over which an asset is expected to be
available for use by an entity.
b. Companies are permitted to follow different
useful lives or residual value, if an appropriate
justification is given, supported by technical
advice.
c. Component accounting and useful life of a
significant part of an asset needs to be
determined separately.
d. No extra depreciation can be provided on the
basis of double/ triple shift.
e. All are correct.

8. Accounting treatment of depreciation on

fixed assets as per the Companies Act

2013, has become effective from:

a. 1.4.2013 b. 1.4.2014

c. 1.3.2013 d. 1.3.2014

e. 31.4.2014

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

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