What can auditor do if asessee is not calculated depreciation as per company's act,2013


Mansi devani (CA)     05 September 2019

Mansi devani
CA 
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Hello Colleagues,

I have appointed as auditor during this year of a private ltd company. In books of account of company, depreciation has been calculated  as rate specified in Income Tax act,1961 even though its company. Moreover, Previous year audit report also made on income tax rate depreciation.

 

Now, my concern is. How can I claim depreciation as per company's act from nowonwards.

example- If I tried to depreciation as per company's act on building---- remaining life of useful life-  how many years I calculated? bcoz if I taken remaining life 30, depreciation is as much high as actual. if I took 23 years, Then Actual depreciation is not comparable with previous years of depreciation and time of discard of assets, how can i calculate depreciation?

 

Please help e how can I solve this problem.

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sabyasachi mukherjee   05 September 2019

sabyasachi mukherjee

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depreciation is generally calculated on useful life of the asset.
Follow AS 6.

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MANISH JAIN (chennai)     05 September 2019

MANISH JAIN
chennai 
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you should compute depreciation on retrospective basis as per companies act and charge it in the current year.

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sabyasachi mukherjee   06 September 2019

sabyasachi mukherjee

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AS 6 is a guideline to Companies Act.

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fareed khan (na)     06 September 2019

fareed khan
na 
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first of all 6 has gone now it comes in AS10 PPE

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