Dear all,
kindly advise with specific notification/circulars/case laws on whether deprecation can be postponed even if machinery is acquired and installed but commercial operation or test batch not yet started.
in nut shell can we postpone depreciation on machinery when the installation is complet with all respect but actual production not yet started?
No, As per AS-6 charging depreciation is mandatory because depreciation INCLUDES A CHARGE FOR EFFLUXION IN VALUE DUE TO PASSAGE OF TIME....
Dear Saurabh, thanks for reply. but i do not agree with you as this asset was in CWIP and not yet capitalised. capitalisation is possible only if the asset is used for service.
i would look forward for some more authenicate opinions.
CCI
Pro
CAclubindia
