Date of purchase of the asset on conversion of p firm to co.

This query is : Resolved

Radhakrishna (Querist)
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14 September 2015 Our company was formed by the conversion of partnership firm. Now, while preparing the annual report for FY 2014-15 for this company, which date to be considered as the date of purchase of fixed assets (either conversion date or actual date of purchase) to calculate the depreciation rate as per Companies Act, 2013.

Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)
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14 September 2015 rather than focusing on date of purchase, concentrate more on remaining useful life, wdv as on 01/04/2014. that will serve your purpose

Radhakrishna

Radhakrishna (Querist)
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14 September 2015 Thanks for your response sir.

Without fixing the purchase date, how can we get the remaining life as on 01/04/2014.
Can you pl explain

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Amol S Joglekar

Amol S Joglekar (Expert)
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17 September 2015 To decide the useful life of the asset is the domain of the management OR valuers or engineers. Those who are capable of deciding the useful life are equally competent to tell us the remaining life.
What we need is to decide on whom to RELY.