Depreciation

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This query is : Resolved

CA. Jyoti Baid (Querist)

17 September 2010 Respected All,

Please give your views:

A private limited company has only one fixed asset which is an immovable property building.
Is it compulsory to charge depreciation on this as per Companies act or Accounting standards

Regards

CA Amit Joshi

CA Amit Joshi (Expert)

17 September 2010 Whether there is one assets or 1000 is is compulsory to charge Dep. Without charging Dep your co can't eligible for any Dividend and your accounts does not considered True & fair.

CA. Jyoti Baid

CA. Jyoti Baid (Querist)

18 September 2010 thanks for the reply.
But the company does not pays dividend or managerial remuneration.
In that case is it compulsory

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

18 September 2010 yes. compulsory

shakuntala chhangani

shakuntala chhangani (Expert)

21 September 2010 Hi Jyoti, after enactment of Companies (Accounting Standard) Rules, 2006, AS become part of cos. Act. Hence it is compulsory for every co. to follow AS. Previously it was just sec. 205, but now, scenerio has changed.
Regards, CA Shakuntala Chhangani

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