Question

__________ has defined depreciation as "a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined."

• A. The Institute of Chartered Accountants of England
• B. The Institute of Chartered Accountants of India
• C. American Institute of Certified Public Accountants
• D. The Institute of Chartered Accountants of Pakistan

Answer 1

The correct option is B The Institute of Chartered Accountants of India

Accounting Standard 6 issued by the Institute of the Chartered Accountants of India defines 'depreciation' as “a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes.