248as6new - 99 Accounting Standard (AS) 6 (revised 1994)...

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99 Accounting Standard (AS) 6 (revised 1994) Depreciation Accounting Contents INTRODUCTION Paragraphs 1-3 Definitions 3 EXPLANATION 4-19 Disclosure 17-19 ACCOUNTING STANDARD 20-29
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Accounting Standard (AS) 6* (revised 1994) Depreciation Accounting (This Accounting Standard includes paragraphs 20-29 set in bold italic type and paragraphs 1-19 set in plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the Preface to the Statements of Accounting Standards 1 .) The following is the text of the revised Accounting Standard (AS) 6, ‘Depreciatio n Accou nting’ , issued by the Council of the Institute of Chartered Accountants of India. * Accounting Standard (AS) 6, Depreciation Accounting , was issued by the Institute in November 1982. Subsequently, in the context of insertion of Schedule XIV in the Companies Act in 1988, the Institute brought out a Guidance Note on Accounting for Depreciation in Companies which came into effect in respect of accounting periods commencing on or after 1st April, 1989. The Guidance Note differed from AS 6 in respect of accounting treatment of (a) change in the method of depreciation, and (b) change in the rates of depreciation. It was clarified in the Guidance Note, with regard to the matter at (a), that AS 6 would be revised to bring it in line with the recom- mendations of the Guidance Note. Based on the recommendations of the Accounting Standards Board, the Council of the Institute at its 168th meeting, held on May 26-29, 1994, decided to bring AS 6 in line with the Guidance Note in respect of both of the aforementioned matters. Accordingly, it was decided to modify paragraphs 11, 15, 22 and 24 and delete paragraph 19 of AS 6. Also, in the context of delinking of rates of depreciation under the Companies Act from those under the Income-tax Act/Rules by the Companies (Amendment) Act, 1988, the Council decided to suitably modify paragraph 13 of AS 6. An announcement to this effect was published in the August 1994 issue of The Chartered Accountant (pp. 218-219). AS 6 is mandatory in respect of accounts for periods commencing on or after 1.4.1995. Reference may be made to the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard. From the date of Accounting Standard (AS) 26, ‘Inta ngible Assets’ , becoming mandatory for the concerned enterprises, this Standard stands withdrawn insofar as it relates to the amortisation (depreciation) of intangible assets (See AS 26). 1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material.
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Introduction Depreciation Accounting 101 1. This Statement deals with depreciation accounting and applies to all depreciable assets, except the following items to which special considerations
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This note was uploaded on 12/07/2011 for the course MBA 0001 taught by Professor Akshat during the Spring '09 term at Institute of Management Technology.

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248as6new - 99 Accounting Standard (AS) 6 (revised 1994)...

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