is depreciation rate required to be calculated every year in case of wdv method. For eg in the first year the rate will be calculated by dividing the scrap value / gross cost. So in the subsequent year do we have to recalculate the rate based on scrap value / wdv ?
formula : 1-(s/c)^(1/n)*100
where c = gross cost / wdv
No, the rate will be same unless management differs with the Scrap value fixed in previous year & you do not have to change WDV every year.
Chirag N Shah & Associates
Mumbai
CA Inter
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SKAA & Associates
New Delhi
CA Inter
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