SLM Method of Depreciation in case of electricity companies

Others 1588 views 4 replies

hi!!!!!

can anyone tell me wats the logic of charging dep on SLM in case of electricity companies specially???

Replies (4)

One reason told by our teacher is that electricity companies involves heavy investments and the comparative revenue generation is less in intial years of operation.  Hence SLM method helps them to claim higher depreciation as compared to WDV method.

i agree with mohit ji

but the rates in slm are much lower compared to wdv...so we cant claim higher dep in slm method

there's no logic in it while others are not entitiled to chg dep in SLM they ve got freedom to do tats it


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