| Originally posted by :sandeep (final) | ||
| " | accumulated depreciation means total of the depreciation till date and provision for depreciation means depriciation for current year. | " |
Exactly......
every year prov for dep. is made and its added in the accumulated depreciation. it should appear in liability sides under the head provisions.
But as per the requirement of Accounting Standard reserve and provisions if relates to a particular assets should be shown as deduction from that asset. thats why it is not shown in liability side and it is shown as a deduction from that fixed assets to which it relates.
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