A company is charging Depreciation @ 13.91% on its assets under plant & machinery .
Now, the company has noticed that useful life of that asset is not more than 3 years.
In these circumstances, whether the company can change rate of depreciation .
Whether company can write off the assets which are more than 3 years old.
Please suggest the correct procedure & accounting treatment with regard to above.
No, the company cannot change the rate of depreciation.It has to follow the rates prescribed in the Companies Act..A company can write off its fixed only when it is to be scrapped or sold or discarded..Till then it has to show the assets in the books and provide depreciation regularly as per the prescribed rates in the act
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