Depreciation under schedule ii
This query is : Resolved
25 February 2015
Dear Sir/Madam
Schedule II of companies act specifies the useful life of the asset instead of depreciation rates which are used in previous companies acts.
By using the useful life of the asset the act is specifying to depreciate the carried amount over the remaining useful life.
So depreciation amount will be Carried amount / Useful life
So depreciation amount will be equal over the useful life.
Is it means that Companies act impliedly asks only to use SLM method for computing depreciation? Can WDV method of depreciation be used for computing depreciation? If yes, how can that be done?
Schedule II of companies act specifies the useful life of the asset instead of depreciation rates which are used in previous companies acts.
By using the useful life of the asset the act is specifying to depreciate the carried amount over the remaining useful life.
So depreciation amount will be Carried amount / Useful life
So depreciation amount will be equal over the useful life.
Is it means that Companies act impliedly asks only to use SLM method for computing depreciation? Can WDV method of depreciation be used for computing depreciation? If yes, how can that be done?
Amol S Joglekar
(Expert)
25 February 2015
Few radical changes are sought for with the inclusion of IFRS.
This depreciation method is on similar lines as that of IFRS.
No need to STICK to WDV once the method is given in the schedule of the companies act.
This depreciation method is on similar lines as that of IFRS.
No need to STICK to WDV once the method is given in the schedule of the companies act.
25 February 2015
yes indirectly its slm method only,
no wdv now not possible under current scheme of charging dep under co act 2013
no wdv now not possible under current scheme of charging dep under co act 2013
26 February 2015
Sir,
I found this rate chart under companies act, 2013.
https://www.club4ca.com/formats/wp-content/uploads/2013/10/Depreciation-Rate-chart-companies-act-2013.pdf
I even found that a rate can be obtained for WDV by using the following formula in ICAI cpt material
Rate= 1- nth root of (Residual value/Cost of Asset)
By this is not mentioned in Companies Act 2013.
How to go about now?
I found this rate chart under companies act, 2013.
https://www.club4ca.com/formats/wp-content/uploads/2013/10/Depreciation-Rate-chart-companies-act-2013.pdf
I even found that a rate can be obtained for WDV by using the following formula in ICAI cpt material
Rate= 1- nth root of (Residual value/Cost of Asset)
By this is not mentioned in Companies Act 2013.
How to go about now?
26 February 2015
only what is allowed under co act sch ii is allowed rest u cant follow practically
27 February 2015
you are welcome samrat.........................
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Movement of goods by packers and movers - type of sale - Reg.
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
