Depreciation on idle assets
This query is : Resolved
04 June 2012
Can depreciation under companies act be claimed on assets being idle (since no production activity took place during the year)?
Pls reply ASAP
Pls reply ASAP
Ca Anand Dubey
(Expert)
04 June 2012
yes apply at the prescribed rate
CA CS Amit S. Kedia
(Expert)
04 June 2012
Dear user,
As per Accounting Standard 6-
Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes.
Hence, Depreciation is required to be charged even on idle assets.Companies Act no where requires to charge depreciation except u/s 205 if you want to declare dividend.
As per Accounting Standard 6-
Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes.
Hence, Depreciation is required to be charged even on idle assets.Companies Act no where requires to charge depreciation except u/s 205 if you want to declare dividend.
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
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
