Corporate Depreciation Accounting : A Critical Study

Contents: Preface. 1. Introduction. 2. Nature of depreciation. 3. Methods of depreciation. 4. Regulatory requirements concerning depreciation accounting in India. 5. Depreciation accounting requirements in some selected countries. 6. Depreciation accounting practices in Indian Corporate Sector. 7. Analysis and interpretation. 8. Summary and conclusions. Bibliography. Index.

"Depreciation accounting has always been a controversial issue in corporate financial accounting and reporting. The leading accounting standard setters of the world have spent considerable time and energy in developing effective solutions to depreciation accounting problems, but problems persist. Depreciation affects both the profit and loss account in the balance sheet. Depreciation accounting also suffers from the problems of determination of actual costs, estimation of useful service lives, and estimation of residual selling values. They involve a great deal of uncertainty and subjectivity. The problems of depreciation are complicated further when depreciable assets are subjected to a process of revaluation.

The objective of this book is to examine how companies account for depreciation in their published annual accounts. In order to do this, we first examine the regulatory requirements. Also a comparative analysis relating to depreciation accounting prevailing in some selected developed countries, has been made to judge the effectiveness of the rule relating to depreciation accounting prevailing in India. This book will assist the rule makers in developing a more realistic approach in framing the depreciation related rules." (jacket)