Page 51 - IC46 addendum

The Insurance Times

c. If change in method results in surplus, surplus
would be credited in the statement of profit
and loss.

d. Change in depreciation method is not
regarded as change in accounting policy.

e. A, B and C is correct.

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

a. Any change in method of depreciation would
be treated as change in accounting policy.

b. From the date of new schedule coming into
affect the carrying amount of asset as on that
date, shall be depreciated over the remaining
useful life of the asset as per the schedule.

c. After retaining the residual value, it shall be
recognised in the opening balance it of
retained earnings where the remaining useful
life of an asset is nil.

d. Only a and B are correct.
e. A, B and C are correct.

12. Under the revised company that 2013,
the basis of charging of depreciation is:

a. Useful life of assets.

www.sashipublications.com Email: info@sashipublications.com 50

Copyright@ The Insurance Times. 09883398055 / 09883380339