What is the depreciable assets as per the accounting standard?
What is the depreciable assets as per the accounting standard?
As per 6 "Depreciation Accounting" assets fulfilling the following conditions are the depreciable assets.
(a) Assets which are expected to be used during more than one accounting period; and
(b)Assets which have a limited useful life; and
(c) Assets which are held by an enterprise for use in the production or supply of goods and services, for rental to others, or for administrative purposes and not for the purpose of sale in the ordinary course of business.
However, this standard does not applicable in case of land as land is considered to have unlimited useful life. Therefore, it is not appropriate to charge depreciation on land and hence it is not a depreciable assets.
