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Mahesh Kumar Sarva, Lovely Professional University Unit 10: Accounting and Depreciation for Fixed Assets
Unit 10: Accounting and Depreciation for Fixed Assets Notes
CONTENTS
Objectives
Introduction
10.1 Meaning and Definition of Fixed Assets
10.1.1 Method of Accounting Historical Cost of Tangible Assets
10.1.2 Basis for the Valuation of Fixed Assets
10.1.3 Method of Accounting Revalued Tangible Assets
10.1.4 Valuation of Fixed Tangible Assets in Special Cases
10.1.5 Valuation of Intangible Assets
10.1.6 Disclosure regarding Fixed Assets
10.2 Meaning and Definition of Depreciation on Fixed Assets
10.2.1 Definitions
10.2.2 Significance of Depreciation
10.2.3 Methods of Recording of Depreciation
10.3 Methods for Providing Depreciation
10.3.1 Straight Line Method
10.3.2 Diminishing Balance Method
10.3.3 Annuity Method
10.3.4 Depreciation Fund Method or Sinking Fund Method
10.3.5 Insurance Policy Method
10.3.6 Revaluation or Appraisal Method
10.3.7 Depletion Method
10.3.8 Machine Hour Rate Method
10.4 Provision and Reserves
10.4.1 Meaning of Provisions
10.4.2 Meaning of Reserves
10.4.3 Importance of Provisions and Reserves
10.4.4 Distinction
10.4.5 Types of Provisions
10.4.6 Types of Reserves
10.5 Statements of Accounting Standards (AS 6) Revised – Depreciation Accounting
10.6 Summary
10.7 Keywords
10.8 Review Questions
10.9 Further Readings
LOVELY PROFESSIONAL UNIVERSITY 213
