98 AS 6 (revised 1994)

Accounting Standard (AS) 6
(revised 1994)

Depreciation Accounting
Contents
INTRODUCTION
Definitions
EXPLANATION

Paragraphs 1-3
3
4-19

Disclosure

17-19

MAIN PRINCIPLES

20-29

94

AS 6 (issued 1982)

Depreciation Accounting

99

Accounting Standard (AS) 6*
(revised 1994)

Depreciation Accounting
[This Accounting Standard includes paragraphs set in bold italic type and 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 and the
‘Applicability of Accounting Standards to Various Entities’ (See Appendix 1 to this Compendium).]

Introduction
1. This Standard deals with depreciation accounting and applies to all depreciable assets, except the following items to which special considerations apply:— (i) forests, plantations and similar regenerative natural resources;
(ii) wasting assets including expenditure on the exploration for and extraction of minerals, oils, natural gas and similar nonregenerative resources;
(iii) expenditure on research and development;
(iv) goodwill and other intangible assets;
(v) live stock.
This standard also does not apply to land unless it has a limited useful life for the enterprise.
2. Different accounting policies for depreciation are adopted by different enterprises. Disclosure of accounting policies for depreciation followed by
* Accounting Standard (AS) 6, Depreciation Accounting, was issued by the Institute in
November 1982.
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.

100 AS 6 (revised 1994)

an enterprise is necessary to appreciate the view presented in the financial