depreciation on buildings

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Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2013 In general cases the value of building goes up so why we charge depreciation on the buildings.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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08 February 2013 Depreciation Charged for Fall in Diminution Value due to Wear and Tear Use of Asset, Its Doesn't Consider Market Value Fluctuation in the rate of Asset.

for That Revaluation of Assets Concept is There as Per Companies act.

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2013 Thanks sir,
I would like to ask you one more question ,

why the value of land not revalued at the end of every financial year by all the organisations , even the value for the same goes up on day to day basis ????

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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08 February 2013 There is No Such Law Which Bind to Revalue Upward, in Indian Law of Accounting.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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08 February 2013 For Revaluation of Fixed Asset, We Have a Guidance Notes, But Not Recognized by Ministry of Affairs.
Just a Guide by ICAI.

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2013 are we allowed to take input credit on consumable goods ???