Chapter 7

Depreciation on Fixed Assets

Value of fixed assetskeeps on reducing over their useful lives due to their use. This reduction, known as depreciation, is charged to profit and loss account. Depreciation has u significant bearing on tnd measurement of financial performance and position.


This chapter seeks to enable you to develop knowledge and understanding of:

  1. Meaning and significance of depreciation.

  2. Scope and coverage of AS-6 on ‘Depreciation Accounting’.

  3. Principles and norms of standard accounting treatment of depreciation, methods of depreciation and other related issues.

  4. Impact of different methods of depreciation ...

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