As per our company policy fixtures, furniture, and office equipments life time is 4 years, that means 25% per annum of the depreciation. Some of the assets after 4 years wind up and remaing some still use after 4 years. Here my auditor for the time of audit he will not consider depreciation for that assets. Please guide me in this case what is the effect in accounts book for the depreciation. Because there is a difference between auditor computation and my computation, mine concidered still after 4 years using assets i put normal rate of depreciation. Please guide me.
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Dep on Assets
Replies (4)
hey how can u claim dep after fouryears?
as u said u are claiming dep @ 25%....after 4 years value of asses becums nill.that means asset ceases to exist in books of account?
how can u claim dep on asset which is not actually present in books?
if u wish to do so.....revalue the asset if it is permitted.
| Originally posted by :Trinath | ||
| " | hey how can u claim dep after fouryears? as u said u are claiming dep @ 25%....after 4 years value of asses becums nill.that means asset ceases to exist in books of account? how can u claim dep on asset which is not actually present in books? if u wish to do so.....revalue the asset if it is permitted. |
" |
Hi Trinath I agree with you , But i have some doubt when asset revalued at expire life periods how can you treat the revenue from sales of these assets.
it will be other income.. not a revenue
Where is the question of booking revenue or other income boss??. If you have depreciated the asset completely and you are still using thes assets, there is no question of charging depreciation however the assets still exist in the books but at its residual value or Nil value. Now it is not possible to charge depreciation. Further as per IFRS provisions the fair value concept can not be applied only on these assets. The fair value if would be applicable it must be applied to the whole class of asset. Again on fair value depreciation can be charged in the income statement with a transfer adjustment from retined earnings to revaluation reserve in the statement of changes in equity.
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