Depreciation
This query is : Resolved
21 May 2012
Can a Co. stop charging depreciation if it had stopped manufacturing & is a loss earning co.?
22 May 2012
Yes, only if satisfies the crteron of AS 10
14.2 Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the profit and loss statement.
14.2 Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the profit and loss statement.
23 May 2012
if the query is with reference to income tax, then the depreciation has to be charged as long as the asset is kept ready for use regardless of it being actually used.
secondly, depreciation has nothing to do with profitability or otherwise of the company. it has to be charged even if company has incurred loss. if it is not charged and the return is filed accordingly, then AO calculates depreciation and loss thereafter.
secondly, depreciation has nothing to do with profitability or otherwise of the company. it has to be charged even if company has incurred loss. if it is not charged and the return is filed accordingly, then AO calculates depreciation and loss thereafter.
27 May 2012
Depreciation is for effux of time. Company should provide depreciation in accordance with the circular issued by the Registrar of Companies.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
