11 July 2015
Sir, As per Companies Act,2013, From the date depreciation schedule comes into effect, the carrying amount of the asset as on that date -
a) shall be depreciated over the remaining useful life of the asset as per this schedule;
b) after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil.
Can we reduce the residual value from the carrying amount as on 01.04.2014 and calculate depreciation on that amount on the basis of useful life of the asset or we should charge depreciation only on carrying amount of asset as on 01.04.2014 without reducing residual value?
CAclubindia
