SCHEDULE 2BANKING COMPANIES: COMPANIES ACT INDIVIDUAL ACCOUNTS

PART 2ACCOUNTING PRINCIPLES AND RULES

SECTION BHISTORICAL COST ACCOUNTING RULES

Fixed assets

Rules for depreciation and diminution in value24

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,

must be reduced by provisions for depreciation calculated to write off that amount systematically over the period of the asset's useful economic life.