Depreciation as per co. act 13

Save Share

This query is : Resolved

ANKUSH (Querist)

30 June 2015 Dear Experts

As per new co. Act, dep will calculate on the basis of life of assets.

How can we compute dep for F.Y 14-15 when we have opening balances as per old Co. Act.

Thanks

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

30 June 2015 You need to check the remaining useful life of old asset and depreciate the asset over its remaining useful life.

If life of asset is already expired but the balance remains then you can charge the remaining balance after keeping the scrap value to retained earnings or you can keep the value as it is till the asset is discarded.

For new asset new depreciation rates as per CA 2013 based on useful life of asset can be applied.

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

30 June 2015 Also Check out Application Guide on the provisions of Schedule II to the Companies Act 2013 by Corporate Laws & Corporate Governance Committee of ICAI from link given below:

https://220.227.161.86/37329clcgc27675.pdf

Also Check out files from links given below:

https://www.caclubindia.com/files0512/160320_66209_depreciation__summary.pdf

https://www.caclubindia.com/files0512/1415307_66291_depreciation.pdf

Check out rates from link given below:

https://www.caclubindia.com/files0512/496179_59179_depreciation_rate_chart_companies_act_2013.pdf

Message likes : 1 times

ANKUSH

ANKUSH (Querist)

30 June 2015 Thanks sanjay Sir for such a Valuable answer........

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now