26 September 2008
Suppose we had buildings built in 1970 at Rs. 1 lac. The said building was revalued in 1990 to Rs. 20 lac. The said building was again revalued in 2005 to Rs. 35 lac.
The WDV Method of Depreciation is followed @ the Companies Act rate of factory building.
Now to realign all the assets with the same method , the management is planning to bring it to SLM basis.
What will the method of computing depreciation on the building , and what kind of assumptions as to the useful ife and rate of dep. has to be taken.
30 September 2008
I know that . But what will happen to the WDV as in this case the asset would have a nil WDV on the basis of SLM rate. This will defeat the purpose of revaluing the Asset.
07 October 2008
I do not follow how the WDV would have been nil, when the building would have been revalued at Rs 35 lakhs. You may kindly state the problem properly to make us understand this aspect.
CAclubindia
