When depreciation is to be charged
1. when the asset is ready to use
2. when the asset is put to use
sri.student (student) (144 Points)
18 February 2012When depreciation is to be charged
1. when the asset is ready to use
2. when the asset is put to use
RAKESH
(Almost CA)
(2199 Points)
Replied 18 February 2012
when the asset is ready for its intended use then depreciation is to be charged.
Ravi Kumar Gupta
(Chartered Accountant & Company Secretary)
(32 Points)
Replied 18 February 2012
Ravi Kumar Gupta
(Chartered Accountant & Company Secretary)
(32 Points)
Replied 18 February 2012
Ravi Kumar Gupta
(Chartered Accountant & Company Secretary)
(32 Points)
Replied 18 February 2012
sri.student
(student)
(144 Points)
Replied 21 February 2012
when depreciation is to be charged
when asset is
ready to use
or
put to use
can you quote the source on the basis of which you are giving the answer like AS or guidance note etc..
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 22 February 2012
Please note that an asset cannot be put to use unless it is ready to use. So the ‘Put to use’ is dependent upon the Ready to use.
Now coming to the point of charging depreciation Section 32 of the I-T Act states that depreciation is to be charged on the asset when it is put to use.
However AS6-Depreciation Accounting, depreciation can be caused due to Wear&Tear, effluxion or passage of time
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