plz any one help me in following query
can we show less depriciation in balance sheet than actual depriciation ? what are the negative or positive effect ?
2 Replies
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 19 April 2013
anyone cant assess actual reduction in value hence actual depreciation is not a real picture.. dep. should be as per co. act for companies
Prashanth S K
(Practice)
(148 Points)
Replied 19 April 2013
First of all the Revised Schedule VI format doesnt prescribe the disclosure of Gross value of fixed assets less depreciation. Hence no need to show depreciation at all in Balance Sheet.
Secondly, the schedule XIV rates as per Companies Act are the minimum rates to be followed. You can follow a higher rate with adequate disclosure, but not lower rates than schedule XIV rates.
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