Treatment of deprecation( WDV ) for Greenfield Project

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Manish Mehta (Querist)
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22 August 2009 I have a query regarding deprecation (WDV Basis) generated during project period as me have four slitted trial and two of which is exclusively for greenfield project deprecation occurred during capitalization(WDV Basis) Can be Charge to pre-operative exp. or it have to be charge to P&L Account as and when the four trial be merged as a single trial for an unit

whether deprecation(WDV Trial) is transfer to pre-operative or charge to P&L Account for greenfield project

Please mail your expert advice on manish.mehta@ambujacement.com

M Prabhakar Menon

M Prabhakar Menon (Expert)
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22 August 2009 Depreciation is a notional charge for loss in the value of an asset on its usage. Preoperative expenses relate to expenses incurred before the date of commencement of operations of the company arguablly there cannot be any depreciation for non usage. The method of calculating depreciation is not relevant at this point.

Manish Mehta

Manish Mehta (Querist)
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22 August 2009 My Question is not regarding method but
whether deprecation(WDV Trial) is transfer to pre-operative or charge to P&L Account for greenfield project

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