Depreciation as per schedule ii

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2014 Due to the changes in depreciation provision as per schedule II, how to calculate the depreciation on the basis of useful life as my company previously using the slm rate and not the useful life for calculating depreciation and also not maintaining any fixed assets register.

and also how to prepare the fixed assets register.

Vishnu Saboo

Vishnu Saboo (Expert)
Follow

16 July 2014 simply you have to revise ur net block as on 01.04.2014.
for eg you having a machine of worth 100000 which was capitalized on 01.04.2013 SLM rate of dep was 4.75%. it means the useful life was 20 years.
as per revised schedule useful life is 15 years.
as per earlier law you have to depreciate machinery 4750 Rs per year so as on 01.04.2014 your net block is 95250, out of which 90250 you have to charge in depreciation in next 14 years as per revised company law.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2014 is any effect of useful life changes shown in opening balances as on 1.4.2014 or they were remain same as of 31.03.2014

Upgrade to CAclubindia Pro. Subscribe Now!

Vishnu Saboo

Vishnu Saboo (Expert)
Follow

16 July 2014 no, opening balance of gross block or net block not to be change, this effect to be taken in current year.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2014 and what about those assets whose remaining useful life is nil
is adjustment entry should be made at 31.3.14 or at the end of cy ie 31.3.15

Vishnu Saboo

Vishnu Saboo (Expert)
Follow

16 July 2014 you have to make entries in 01.04.2014.