Question

Accounting Standard-6 relating to depreciation is applicable to___________.

• A. Forests and plantations
• B. Mines
• C. Goodwill
• D. Land if it has a limited useful life for the enterprise

Answer 1

Answer: (D)

Land if it has a limited useful life for the enterprise

Accounting Standard-6 deals with depreciation accounting and applies to all depreciable assets, except the following items to which special considerations apply:—

(i) forests, plantations and similar regenerative natural resources;

(ii) wasting assets including expenditure on the exploration for and extraction of minerals, oils, natural gas and similar non-regenerative resources;

(iii) expenditure on research and development;

(iv) goodwill and other intangible assets;

(v) live stock.

This standard also does not apply to land unless it has a limited useful life for the enterprise.