Depreciation

2732 views 7 replies

CA Final

84 Points Joined January 2011

Can depreciation can be calculated on LIFO basis?

If a partnership firm has be following FIFO basis to calculate depreciation, Can it change to LIFO basis now?

Replies (7)

Accounts manager-MBA

2150 Points Joined July 2008

DEPRECIATION IS CHARGED ON THE ASSET PUT TO USE FOR P & M & FOR OTHER ON DATE OF PURCHASE

Chartered Accountant

265 Points Joined December 2009

Hi Indhumathi

Depreciation is calculated on the value of assets (as per companies Act/AS) or on the value of block of assets (as per income tax)..

LIFO/FIFO is valuation method of stock. So it is not relevant for depreciation calculation.

Awaiting Final Result

82 Points Joined November 2008

Depreciation is allowed to a prtnership as per Income Tax Act 1961 section 32 which gives the benefit from the date of acquisition and put to use.

Group Financial Accountant

1526 Points Joined March 2009

Originally posted by : Sanat kumar
	Hi Indhumathi Depreciation is calculated on the value of assets (as per companies Act/AS) or on the value of block of assets (as per income tax).. LIFO/FIFO is valuation method of stock. So it is not relevant for depreciation calculation.

yes agree with Sanath

semi qualified chartered accountant

981 Points Joined May 2011

Originally posted by : Sanat kumar
	Hi Indhumathi Depreciation is calculated on the value of assets (as per companies Act/AS) or on the value of block of assets (as per income tax).. LIFO/FIFO is valuation method of stock. So it is not relevant for depreciation calculation.

agreed

CA Final

84 Points Joined January 2011

Hi friends thanks for replying. Please calculate deprication in the follwoing case