Depreciation as per companies act,2013
This query is : Resolved
ABHISHEK TURAKHIA
(Querist)
18 March 2015
Hi, I Have a query regarding depreciation as per companies act 2013,
1)as the new act requires the depreciation to be computed on the basis of remaining useful life of the asset, would it also require the useful life of old assets to be redetermined or should it be calculated based on the year of purchase
2) Is the notification relating foreign exchange fluctuations on purchase of Fixed Assets still applicable
3)What would be the treatment of the Intangible Assets as per the new act, are they still amortizable over a maximum period of ten years as given in AS 26.
1)as the new act requires the depreciation to be computed on the basis of remaining useful life of the asset, would it also require the useful life of old assets to be redetermined or should it be calculated based on the year of purchase
2) Is the notification relating foreign exchange fluctuations on purchase of Fixed Assets still applicable
3)What would be the treatment of the Intangible Assets as per the new act, are they still amortizable over a maximum period of ten years as given in AS 26.
19 March 2015
life of old assets needs to be reconsidered as per life given in new co act 2013
2. yes
2. yes
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20 March 2015
3) yes they are amortizable over a maximum period of ten years
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ABHISHEK TURAKHIA
(Querist)
25 March 2015
Thank you, I would also like to understand what is to be done when the life a Asset is already expired as per the Schedule 2 eg. A newly bought property wherein which the building was constructed before 60 years which is the maximum life of building as per the Companies Act, 2013 and the Building is structurally solid and still being used, In such a case would a Board of Directors estimate for remaining life of the asset suffice or Expert valuation is to be done.
25 March 2015
then the balance if any in such account of asset shall be transferred to reserves a/c.
for details can refer this links.
https://taxguru.in/company-law/depreciation-companies-act-2013-practical-approach.html
https://taxguru.in/company-law/depreciation-companies-act-2013.html
https://www.caclubindia.com/experts/depreciation-2032589.asp#.VRKYlvyUdic
for details can refer this links.
https://taxguru.in/company-law/depreciation-companies-act-2013-practical-approach.html
https://taxguru.in/company-law/depreciation-companies-act-2013.html
https://www.caclubindia.com/experts/depreciation-2032589.asp#.VRKYlvyUdic
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