Depreciation as per companies act 2013

Co Act 2013 706 views 4 replies

Varun Bhat

Student CA IPC / IPCC

151 Points Joined January 2014

Dear friends ,

Please help me solve thi query :-

As we all know Companie Act 2013 is applicable for the statutory audit for the FY 2014-15. As per Companies Act 2013 , the method of depreciation is Straight Line method.

My query is whether we have to recompute depreciation from the beginning of its life on SLM basis and account it as per AS -6 or follow the below mentioned statement (taken from bare act)

"From the date this Schedule comes into effect, the carrying amount of the asset as
on that date—
(a) shall be depreciated over the remaining useful life of the asset as per this
Schedule;
(b) after retaining the residual value, shall be recognised in the opening balance
of retained earnings where the remaining useful life of an asset is nil. "

Please provide your suggestions.

Thanks in advance !

Replies (4)

ACS Anjali Jain

SERVICE - CS

472 Points Joined July 2012

no need to compute the depreciation from the starting

Guest

1.schedule does not specify method of charging dep.,all it provide is useful life of asset..so method can either be slm or wdv. 2.you dont need to calculate dep from retrospective effect unless u change method of charging dep.