Under cos act, depreciation for second shift is 1.5X. Is this applicable for unit of production method also? i guess not because under uop, we would take the production of second shift in to account.
thanks a lot.
4 Replies
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 28 August 2021
It’s usually period for which depreciation is charged. if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period. No CCP mentioned for UOP, which means other material is not sufficient or it is double depreciation under UOP. https://www.cas.ind.in/wp-content/uploads/11Guidance-Note-on-Accounting-for-Depreciation-in-companies-in-the-context-of-Schedule-II-to-the-Companies-Act-2013.pdf
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 28 August 2021
On the other hand, double depreciation is correct for UOP.
SFaiz
(Engineer)
(61 Points)
Replied 28 August 2021
so if a machine works for 300 days in double shift, the number of hours will be 300x8hoursx2.
for three shifts, it will be 300x8x3.
please correct me if I am wrong.
also what is ccp?
thanks
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 28 August 2021
Instead, if your depreciation is 100₹, then actual depreciation for double shift= 150
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