Can we calculate useful life of an Asset under WDV method of depreciation? Can we compare useful life of an asset under WDV as per companies act 1956 with useful life as per Companies Act 2013?
28 April 2015
Useful life of the asset is given in Schedule II of Companies Act 2013. So you have to follow that. You can calculate WDV rate with given useful life of asset with following formula.
r = 1-(s/c)^(1/n)
Where,
r = rate of depreciation s = scrap value c = cost of assets n = no. of year of life of assets
28 April 2015
Depreciation to be calculated as per Companies Act 2013 from FY 2014-15 onward.
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:
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