Cost in case of chosing wdv method

Sachin (sachinsahdev@gmail.com) (51 Points)

19 July 2014  

Hi Experts,

 As per AS 6, what should be the amount of cost on which depreciation would be calculated on choosing WDV Methos

Say,

Cost 100000

SV 5000

Life 10 Years

In SLM : Cost will be 100000-5000 =95000 on this depreciation will be distributed 9500 in 10 years

What will happen while choosing WDV

Say rate comes 20% for 10 years

Cost will be 95000 or 100000 on which depreciation will be calculated ?

Basis or standards line, if shown, will be added advantage.

 

Thanks