Schedule ii of the companies act, 2013(depreciation) and the

Companies Act 2013 663 views 2 replies

CA Rohit kapoor

5469 Points Posted on 31 May 2015

So Friends, the time for Preparation of the first financial statements as per Companies Act is here. One of the most important provisions of the Act for the Companies as well as Auditors to consider is the New Method of calculating Depreciation as per Schedule II Part C of the Companies Act 2013.I believe after reading this article everything would be Crystal Clear to you.

So have Patience and read it till the End.

Happy Reading!!!!!!

Attached File : 1252553 20150531163046 depreciation under companies act 2013.doc downloaded: 208 times

Replies (2)

Gajendra T.S.

54 Points Posted on 01 June 2015

Sir, very nicely explained. Thanks a lot sir. I have 2 doubts as below; 1. In case of existing assets as on 01.04.14 which has remaining useful life, we need to calculate 5% salvage value on Original cost or Carrying amount as on 01.04.14. [ In formula, we need to take C= Carrying amt. Or Cost, on each asset]. U hav calculated % of depn.(wdv) taking 5% SV on Original cost. But in example 1, end result is 5% on carrying amt.

Gajendra T.S.

54 Points Posted on 01 June 2015

Sir, very nicely explained. Thanks a lot sir. I have 2 doubts as below; 1. In case of existing assets as on 01.04.14 which has remaining useful life, In formula, we need to take C= Carrying amt. Or Cost, on each asset. U hav calculated % of depn.(wdv) taking 5% SV on Original cost. But in example 1, end result is 5% on carrying amt. In ur example, if we replace 'C' as carrying amt i.e., 1-(5000/47289)^(1/10)*100 =20.12%,SV at the end of 10th yr will be 5000. Pls explain & help sir. ( Some experts in CA club has done this method). 2. In example 2, wat is the treatment of Residual value of Rs.5000 at year end. Waiting for ur reply sir. Thanks in advance.