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Depreciation companies act 2013
If a company is following WDV method of accounting for Depreciation , and as per the policy of Company it does not assume any residual value for any assets.
Then as per �the formula given in the Guidance note on Application to Schedule II of ICAI i.e
Rate for Depreciation=(1-((scrap/Cost/wdv)^(1/Remaining Life)))*100
Then if we put Scrap Value Zero the �rate will always come 100%�
So whether Company should write off all its assets in the very first year
or it is mandatory to assume a residual value for each assets under Companies Act 2013.
Replies (4)
I tried notinal value also but still rate comes between 95-98% , which is resulting in very high depreciation in the first year specially for those which are existing as on 01-4-14
In case of WDV depn.as per companies act 2013, after charging depn.for 14-15, if WDV becomes more than SV, what needs to be done? Pls clarify. Thank u.
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