Depriciation method of companies


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This discussion clarifies depreciation methods for companies. The amount charged each year can either remain constant (Straight Line method) or decrease over time (Written Down Value method). The Companies Act now bases depreciation on the asset's life, allowing companies to choose a method to spread the cost over that period.

28 February 2020 whether in case of companies depriciation charged amount of an assest willl be same or decreased every year

28 February 2020 If you choose straight line method it will be the same. In case of wdv method it will decrease. You can choose any one.

29 February 2020 but sir as per companies act now dep is based on the life as per co act.

29 February 2020 Yes determine the life and choose any one of the method to charge depreciation over the period of life of the asset.

29 February 2020 thank you so much for resolving my query

29 February 2020 Welcome.....................


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