Depriciation accounting
This query is : Resolved
22 May 2012
If a company Changes his Method of policy By changing the method of depriciation From SLM to WDV The method is changed for the Entire Plant and machinery in the Company. Does AS 6 Applies to the Company to do Retrospective effect from the date of use of machinery. The company has not done retrospective effect because they have a opinion the AS mention retrospective effect for Method Changed for Asset not Assets.
Guest
Guest
(Expert)
22 May 2012
In my opinion, it shall be done with retrospective effect. We have done at our client, a listed company, on the full block of assets
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22 May 2012
Yes, Changes will be made retrospectively and any short/exces depreciation on such retrospective change will be charged to P&L A/c
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23 May 2012
But due to this the Entire block of assets will become Zero. Then Also the company has to do the Retrospective effect. Company has a opinion that the Block will Become Zero if Assets Depreciated retrospectively.
23 May 2012
There is no block system in companies act.
Even if the depreciation with retro effect drastically reduces the net amount of assets. you will have to do it with retro effect.
Even if the depreciation with retro effect drastically reduces the net amount of assets. you will have to do it with retro effect.
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