Page 50 - IC46 addendum

General Insurance Accounts (IC-46)

a. The change in method of depreciation from
fixed depreciation to useful life should be
suitably incorporated in the accounts of the
particular year.

b. For a change in accounting policy, accounting
standards 5 and 6 must be taken into
account.

c. As per the Accounting Standard 6, any
change of depreciation method should be
done only if required by any statute.

d. When a change in method of depreciation is
made, depreciation should be recalculated in
accordance with new method.

e. All are correct.

10. Which statements are not correct in
respect of depreciation accounting under
the Companies Act 2013?

a. The deficiency or surplus arising from
retrospectively computation of depreciation in
accordance with new method could be
adjusted in accounts in the year in which
method is changed.

b. In case of deficiency in depreciation in
respect of past years suitable charge should
be made in statement of profit and loss.

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