Important Points for IC 26 - Life Insurance Finance Exam
Page 54 Of 82
Go to:
Accounting policies are the specific accounting principles and the methods of applying those principles adopted by an enterprise in the preparation and presentation of financial statements.
All items of income and expenses, which are recognised in a period, should be included in the determination of net profit or loss for the period unless an Accounting Standard requires or permits otherwise.
Depreciable amount is the historical cost of a depreciable asset less the estimated residual value.
Depreciation is a measure of wearing out, consumption or other loss of value of a depreciable asset, arising from use, effluxion of time or obsolescence through technology and market changes. It is charged as a fair proportion of the depreciable amount in each accounting period during the expected useful life of an asset. Depreciation includes amortization of assets whose useful life is predetermined.
Depreciable assets are assets which - are expected to be used during more than one accounting period; and have a limited useful life; and are held by an enterprise for use in the production or supply of goods and services, for rental to others, or for administrative purposes and not for the purpose of sale in the ordinary course of business.
MODELEXAM® 
www.realsoftinfoplan.com