10 June 2014
Whether depreciation is properly Charged Whether client maintains FixedAsset Register as per requirements of companies act Whether Accumulated depreciation was correct Arthemetical accuracy . . .
10 June 2014
U must note that if any assets is purchased during the year, then depreciation rate become half, if it is purchased after 182 days from the beginning of the FY. If the assets r sold then u must see if the company is following the policy of Depn. on sold assets. If separate provision is there for Depn. on assets, then u must disclose depn. to that account, and reduce the depn. on assets sold from that ledger.
10 June 2014
Depreciation on companies act is caluculated on pro-rata basis and not on basis of half year or more than half year which is the case to be taken in income tax act depreciation caluculation