Accounting · Depreciation

Evaluate the accuracy of the following statements regarding depreciation: Statement 1: The Reducing Balance Method involves calculating depreciation as a fixed percentage of the book value at the beginning of each year. Statement 2: Under the Straight Line Method, depreciation remains constant, and it is preferred when repair costs increase significantly as the asset ages. Statement 3: According to revised AS 10 in India, depreciation must be charged even if the fair value of the asset exceeds its carrying amount. Statement 4: Depreciable amount is defined as historical cost plus installation expenses without deducting the estimated residual value.