AS-6-depreciation
This query is : Resolved
19 October 2009
suppose a machinery is purchased on 1-01-01
installed on 1-02-01 inuagrated on 1-03-01 test trial done on 1-04-01 and production through it started on 1-05-01.
My question is - from which date would we consider the depreciation charge?.
from which date chould we charge depreiation on it?
installed on 1-02-01 inuagrated on 1-03-01 test trial done on 1-04-01 and production through it started on 1-05-01.
My question is - from which date would we consider the depreciation charge?.
from which date chould we charge depreiation on it?
19 October 2009
Hi,
With respect to the date of capitalisation there are few principles when you read AS6,AS10 and also the principles on IFRS IAS 16
a) When a new project is capitalized, the criteria for capitalization date is the date of Commercial production. Thus when there are many mahcineries/assets constructed or purchased and thereafter a trial run is done, the capitalization date will be the date of final approved commercial production complying with all the output quality norms.
b) For additions made to existing plant for replacements or extension will be based on the date of putting into use. So the date will be the start date of using the machine.
You can accordingly apply the principles in your case.
Rgds
Srinivasan
With respect to the date of capitalisation there are few principles when you read AS6,AS10 and also the principles on IFRS IAS 16
a) When a new project is capitalized, the criteria for capitalization date is the date of Commercial production. Thus when there are many mahcineries/assets constructed or purchased and thereafter a trial run is done, the capitalization date will be the date of final approved commercial production complying with all the output quality norms.
b) For additions made to existing plant for replacements or extension will be based on the date of putting into use. So the date will be the start date of using the machine.
You can accordingly apply the principles in your case.
Rgds
Srinivasan
19 October 2009
Depreciation has to be charged when commercial production has been commenced.
So in your case depreciation has to be charged from 1-5-2001.
So in your case depreciation has to be charged from 1-5-2001.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Unregistered suppliers utility
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- GST Rate for Catering Services
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- EXPORT COMMERCIAL INVOICE HSN CODE
- ITR 4 and Bank transactions
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
