28 March 2011
OUR COMPANY PROVIDE DEPRECIATION ON SLM BASIS. BUT IN CASE OF A PARTICULAR ASSET WHICH WAS PURCHASED 20 YEARS BEFORE THE RATE OF DEPRECIATION IS @ 5.28% i.e THE ASSET HAS BEEN FULLY DEPRECIATED. BUT IN THE SAME GROUP ANOTHER ASSETS WHICH WAS PURCHASED 5 YEARS BEFORE IS ALSO EXISTS.NOW IT IS NOT POSSIABLE TO SEGREGATE THE SAME ASSETS FOR DEPRECIATION PURPOSE. SO IN THIS SITUATION HOW WE WILL CALCULATE DEPRECIATION UNDER COMPANIES ACT.FOR THE CURRENT FINANCIAL YEAR.
28 March 2011
Looks confusing, but there must be some indiaction on the machine about the make, year etc. Also at the time of capitalising the asset how is it possible that the capitalisation takes place without identification of the asset.
As you are following companies act you must be a company, the auditor will also have to comment on the Fixed assets records.
All said there must be a Fixed assets register maintained somewhere. Else i guss depn calculation will be very difficult.
CAclubindia
