16 September 2016
I have a query regarding depreciation of a company which was incorporated before 1980, it is very difficult to find information of assets date of purchase from 1980's. however useful life of such assets has been completed. so how can we account these assets as per companies act 2013 without confirmed date of purchase.
You have two options for the same. 1) As your saying that the purchase is almost around 1980, the useful life of such assets would have been completed by now as per CA ACT 2013. You can charge the opening WDV of such assets to opening retained earnings and close it once and for all.No need to carry it further and its not permissible also. 2) If you feel that the assets have still a useful life and you have done some sort of repair to extend its useful life, then please get a Chartered Engineers certificate stating the same. He will mention in his certificate the balance useful life based upon his technical evaluation and working condition of the machinery.
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