Depreciation as per uop method

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.

Replies (4)
Quick Summary
This discussion clarifies depreciation rules under the Companies Act, specifically for the Unit of Production (UOP) method. It addresses whether the 1.5X depreciation for second shifts and 2X for third shifts, typically applied under time-based methods, also applies to UOP. The consensus suggests that for UOP, depreciation is directly tied to production output, so increased usage from multiple shifts inherently increases accounted depreciation without a separate multiplier. The concept of 'CCP' in this context is also queried.

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

On the other hand, double depreciation is correct for UOP. 

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

Instead, if your depreciation is 100₹, then actual depreciation for double shift= 150

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