Accounting for depreciation
This query is : Resolved
PRATEEK GOYAL
(Querist)
06 June 2012
Sir,
We have incurred number of expenses(building materials and labour) for the purpose of temporary site office for housing development project going on.
We have transfered all such expenses to one account named Site office expenses.
What is the right procedure to claim the expenses of depreciation on such building.
whether each such expenditure is to be depreciated seprately or a cut off date be taken on which building is ready for the date from which depreciation is required to be calculated??
We have incurred number of expenses(building materials and labour) for the purpose of temporary site office for housing development project going on.
We have transfered all such expenses to one account named Site office expenses.
What is the right procedure to claim the expenses of depreciation on such building.
whether each such expenditure is to be depreciated seprately or a cut off date be taken on which building is ready for the date from which depreciation is required to be calculated??
06 June 2012
Depreciation is charged on an ASSET.
An asset is one which is READY FOR USE.
At present your expenditure amounts to capital work in progress and you cannot claim depreciation on the same.
Depreciation can only be claimed when the asset is ready for use.
An asset is one which is READY FOR USE.
At present your expenditure amounts to capital work in progress and you cannot claim depreciation on the same.
Depreciation can only be claimed when the asset is ready for use.
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