05 May 2015
what method has to be used for calculation of depreciation on fixed assets as per schedule 2 of the companies act 2013.
Act does not specify rates of depreciation and method (SLM or WDV).
Hence how can be done it without using rates.
please guide whether self calculated rates are necessary to use or only remaining useful life at 01.04.2014 will be okay for calculating depreciation for F. Y. 2014-15.
05 May 2015
simply you have to divide the value with useful life. i.e. is item capitalized with 100 Rs and its useful life is 5 years. so after salvage value 95 Rs will be value on which depreciation to charges. so 19 Rs per year to charge in SLM method
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