Question

Accounting Standard-6 relating to depreciation is not applicable on ____________.

• A. Building
• B. Plant and machinery
• C. Live stock
• D. Patents

Answer 1

Answer: (C)

Live stock

Accounting standard-6, relating to depreciation is not applicable to the following items to which special considerations apply:

1. Forest, plantation, and similar regenerative natural resources.

2. Wasting assets including expenditure on the exploration for and extraction of minerals, oil, natural gas, and similar non-regenerative resources.

3. Expenditure or research and develepoment.

4. Goodwill.

5. Live stock.

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