While going through the definition of AS 6, it said about its applicability except: 1) Forests, Plantation etc 2) Wasting assets like Extraction of Minerals, Oil and Gas etc 3) Expenditure on R&D 4) Livestock. Since, Coal mines come under Wasting asset, hence, this standard should not be applicable to it. But still we use 'Depletion Method' for calculating depreciation of a Coal mine. Why?
Menu
Explanation on AS 6 needed for Coal Mine
Replies (1)
Depletion method is the same as units of production depreciation method just like I guessed.
The PPE standards are not applicable for mining. They will follow their own cost methodologies,
Any doubts?
Recent Topics :
- Section 54F Exemption
- Would you use a free, open-source alternative to s
- Business & Finance
- Report in GSTR 1 ( Credit Note ) for Wrong GST Rat
- Reply of summons issued under section 70 of the cg
- How to Bulk GSTIN Number Verify and Validation
- OPC Annual Filing Defaults – Need Guidance t
- OPC Annual Filing Defaults – Need Guidance t
- FCGPR of a past period
- Discuss and Download CA Final Question Paper Nov 2
Related Topics :
CAclubindia
