Historical cost accounting rules
Preliminary
27. Subject to Sections C and D, the amounts to be included in respect of all items shown in a company’s financial statements shall be determined in accordance with the rules set out in paragraphs 28 to 42.
Fixed assets
General rules
28. Subject to any provision for depreciation or diminution in value made in accordance with paragraph 29 or 30 the amount to be included in respect of any fixed asset shall be its cost.
Rules for depreciation and diminution in value
29. In the case of any fixed asset which has a limited useful economic life, the amount of -
(a) its cost; or
(b) where it is estimated that any such asset will have a residual value at the end of the period of its useful economic life, its cost less that estimated residual value,
shall be reduced by provisions for depreciation calculated to write off that amount systematically over the period of the asset’s useful economic life.
(1) Where a fixed asset investment of a descr
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