15 April 2015
As per new Co Act 2013, Depreciation shall be calculated with maintaining 5% residual value of an asset instead of Re 1. my question is what treatment should be done for an assets which already at Re 1 and their useful life is also completed ?
19 April 2015
Balance of Assets whose useful life is already expired as on 01.04.2014 should be transferred to retained earnings but in your case since the value of asset is already Rs 1 there is no need to do anything.
Also check out Application Guide on the provisions of Schedule II to the Companies Act 2013 by Corporate Laws & Corporate Governance Committee of ICAI from link given below:
20 April 2015
Also remember that Assets will remain in your Fixed Assets Register till the asset is discarded. It will be there in both Gross Block and Accumulated Depreciation.
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