XYZ Ltd. purchased an asset on 1st January, 20X0, for 1,00,000 and the asset had an estimated useful life of ten years and a residual value of nil. The company has charged depreciation using the straight-line method at 10,000 per annum. On 1st January, 20X4, the management of XYZ Ltd. Reviews the estimated life and decides that the asset will probably be useful for a further four years and, therefore, the total life is revised to eight years. How should the asset be accounted for remaining years?
Change in useful economic life of an asset is change in accounting estimate, which is to be applied prospectively, i.e., the depreciation charge will need to be recalculated. On 1st January, 20X4, when the asset's net book value is 60,000. The company should amend the annual provision for depreciation to charge the unamortized cost (namely, 60,000) over the revised remaining life of four years. Consequently, it should charge depreciation for the next four years at 15,000 per annum.
Which Himalayan breed of goat is found in Jammu & Kashmir, Himachal Pradesh with long horns, curled backwards, droopy ears, small teats and color is whi...
Which variety of patchouli is known for yielding the best quality oil?
The Father of Blue Revolution is
Actinomycetes prefer which condition for their growth
In Lift Irrigation Project, the total head is ___
Granite is the example of which of the following rock
What was the full form of the DPAP programme
Which one of the following pairs is not the basic race of sorghum?
Clostridium bacteria is responsible for spoilage of
The organic matter content of the peat soil is