Hi members!
Please clarify whether in para 24 of accounting standard 6-Depreciation accounting...there are two conditions on fulfilment of which the addition/extension could be depreciated on its own useful life...
1) Separate identity AND
2) Capable of being used even after existing asset is disposed off..?
The word AND means both the conditions need to be satisfied??
Yes, the word "and" means both conditions to be satisfied...because if both conditions are not satisfied the additions to be depreciated at the useful life of original asset only(i.e. in that case the useful life of newly added item becomes irrelevant)
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