Verantwoording vir waardevermindering in die finansiële state van maatskappye

M.Com.This study examines the disclosure of depreciation in company financial statements. The following aspects were discussed: a) The nature of depreciation. Concepts for the measurement of depreciation can be 'classified under the following: depreciation as a process of cost allocation depreciation as a process of valuation depreciation as a reservation of funds for the replacement of assets. b) The measurement of depreciation. Both the depreciable amount ang the useful life of fixed assets are factors taken into consideration in the measurement of depreciation. The method applied in the measurement as well as the problems related to estimation are discussed. c) The revaluation of fixed assets. Maintenance of capital as the purpose of revaluation, the determination of such value and sUbsequent entry thereof into the financial records are contemplated. d) The disclosure fixed assets of depreciation and revaluation of in the financial statements of companies. The prerequisites according to generally accepted accounting practice are quoted and the application in practice of same subsequently viewed. The discussion clearly signifies that the relevant documents issued by the SA Institute of Chartered Accountants are clear and unambiguous. Yet, the requirements of disclosure contained in these documents are not adhered to in practice