USEFUL LIFE
This query is : Resolved
23 September 2019
Respected Sir,
As I have to workout the dep for a pvt ltd company, I shall be highly obliged should you please let me know useful life for the following assets :
1- Computer 2- Electrical Fitting 3-Furniture & Fixture
4- Motor Car 5-Office Equipment 6-Vehicles
Please let me know the way dep for a pvt ltd company is worked out.
With kindest regards
yours tarique rizvi
982 1630 130
As I have to workout the dep for a pvt ltd company, I shall be highly obliged should you please let me know useful life for the following assets :
1- Computer 2- Electrical Fitting 3-Furniture & Fixture
4- Motor Car 5-Office Equipment 6-Vehicles
Please let me know the way dep for a pvt ltd company is worked out.
With kindest regards
yours tarique rizvi
982 1630 130
23 September 2019
According to companies act 2013, Depreciation can be calculated in two ways.
1. The WDV of the existing useful life of each asset , is to be depreciated for the remaining useful life of the asset declared by technical expert who is to be appointed by company. Similarly for the new addition also useful life of the asset to be determinate expert and asset to be depreciated accordingly. There should be consistency in deciding useful life of the asset and proper documents given to statutory auditors and reply to be made to their queries.
2. The depreciation can also be made as per the useful life speciifed in schedule II of companies act. The Useful life of Factory building - 30 years, Plant and Machinery - 15 years , Furniture and Electric Installation - 10 years
Please discuss with your auditors before taking decision
1. The WDV of the existing useful life of each asset , is to be depreciated for the remaining useful life of the asset declared by technical expert who is to be appointed by company. Similarly for the new addition also useful life of the asset to be determinate expert and asset to be depreciated accordingly. There should be consistency in deciding useful life of the asset and proper documents given to statutory auditors and reply to be made to their queries.
2. The depreciation can also be made as per the useful life speciifed in schedule II of companies act. The Useful life of Factory building - 30 years, Plant and Machinery - 15 years , Furniture and Electric Installation - 10 years
Please discuss with your auditors before taking decision
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