Depreciation as per co. act 13

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ANKUSH (Querist)
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30 June 2015 Dear Experts

As per new co. Act, dep will calculate on the basis of life of assets.

How can we compute dep for F.Y 14-15 when we have opening balances as per old Co. Act.

Thanks

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 June 2015 You need to check the remaining useful life of old asset and depreciate the asset over its remaining useful life.

If life of asset is already expired but the balance remains then you can charge the remaining balance after keeping the scrap value to retained earnings or you can keep the value as it is till the asset is discarded.

For new asset new depreciation rates as per CA 2013 based on useful life of asset can be applied.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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30 June 2015 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:

http://220.227.161.86/37329clcgc27675.pdf

Also Check out files from links given below:

https://www.caclubindia.com/files0512/160320_66209_depreciation__summary.pdf

https://www.caclubindia.com/files0512/1415307_66291_depreciation.pdf

Check out rates from link given below:

https://www.caclubindia.com/files0512/496179_59179_depreciation_rate_chart_companies_act_2013.pdf

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