Assertion (A): Under Ind AS 16, land and buildings are separable assets and are accounted for separately. Reason (R): Land generally has an infinite useful life, whereas buildings have a limited useful life. Choose the correct option.
A. Both A and R are true but R is NOT the correct explanation of A
B. Both A and R are true and R is the correct explanation of A
C. A is true but R is false
D. A is false but R is true
Answer: Option B
Solution (By JKSSB Mock Tests)
Ind AS 16 requires separate accounting for land and buildings because they have different useful lives. Land is usually not depreciated (infinite life), while buildings are depreciated over their finite useful lives. R correctly explains A.
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