18 February 2020
Hi, A US based company has a policy saying "All company purchased mobile phone should be expensed off (regardless of value". We, here in India, can follow the same or we need to treat it differently due to some provision of Companies & IT act.
Kindly provide guidelines in this regard, if possible/available.
24 February 2020
Thanks Amol Sir, but i want to know, can we here in India also expensed off the same based on companies policy, or we need to capitalize the same due to some IT or companies act guidelines.
25 February 2020
using IFRS, it will be advisable to capitalise. The depreciation should be charged as (initial cost - salvage value) divided by economic life of mobile handset. ( 3 years is normally suggested as the economic life of mobile handset)
CAclubindia
