wiz-icon
MyQuestionIcon
MyQuestionIcon
2
You visited us 2 times! Enjoying our articles? Unlock Full Access!
Question

Useful life of a depreciable asset should be estimated after considering certain factors. Which of the following factors is not mentioned by Accounting Standard-6 ?

A
Expected physical wear and tear
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Fall in market price
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
Obsolescence
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Legal or other limit on the sue of the asset
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A Fall in market price
Accounting standard 6 deals with depreciation accounting. The useful life of a depreciable assets should be estimated after considering the following factors:
1) Expected physical wear & tear
2) Obsolescence
3) Legal or other limits on the use of asset

But the fall in market price is not mentioned in the Accounting Standard 6.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Financial Statements of NPO
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon