25 February 2015
Dear Sir/Madam Schedule II of companies act specifies the useful life of the asset instead of depreciation rates which are used in previous companies acts. By using the useful life of the asset the act is specifying to depreciate the carried amount over the remaining useful life. So depreciation amount will be Carried amount / Useful life So depreciation amount will be equal over the useful life. Is it means that Companies act impliedly asks only to use SLM method for computing depreciation? Can WDV method of depreciation be used for computing depreciation? If yes, how can that be done?
25 February 2015
Few radical changes are sought for with the inclusion of IFRS. This depreciation method is on similar lines as that of IFRS. No need to STICK to WDV once the method is given in the schedule of the companies act.
CAclubindia
