Depreciation

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MADHURESH SUMAN

MADHURESH SUMAN (Querist)
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19 June 2015 hi sir plz help me
how many years go back for calculate carriying amount of individual asset

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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20 June 2015 Under generally accepted accounting principles (GAAP) we follow 'Historical Cost' a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company.

Hence, we need to go back till date of purchase of the individual asset.

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MADHURESH SUMAN

MADHURESH SUMAN (Querist)
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21 June 2015 thank you sir,
as per Schedule -II generally useful life of Fixed Assets is not more than 15 years except Building whether it is acceptable go only 15 years back and in case of Building Original cost as on 1st April' 1999 taken as purchase 5 of its taken as Residual value?

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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22 June 2015 You propose to write off the book value of fixed assets except buildings. Right?

Anyway check the notes and disclosures in financial statements and also your significant accounting policies, where your practice shall not deviate with what you specify in the financial statements.

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