Fixed assets or expense (capitalized or not)

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Nidheesh V (Querist)
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18 June 2016 1)Purchase of Ups battery for computer treated in which head of Fixed assets ? how much can claim as depreciation?
2)LAN card purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
3)Hub switch purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
4)Printer Cartridge Purchase treated in which head of Fixed assets ? how much can claim as depreciation ?
5)Purchase of Anti-virus for computer treated in which head of Fixed assets ? how much can claim as depreciation ?

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Expert)
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20 June 2016 The basic definition of fixed as per AS 10 or as per IND AS 16 is the item should be held for use in the production or supply of goods or services. The item should be expected to be used for more than one period or one year.
In the above cases cited, cartridge or antivirus software are generally not used for more than one year as the antivirus software are regularly updated. Thus they are treated as consumables.
Remaining can be treated as computers and data processing units. The depreciation in this case is based on life of asset as per Schedule II of Companies Act, 2013. The life is prescribed as 3 years and 6 years.

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