AS-6-depreciation
This query is : Resolved
19 October 2009
suppose a machinery is purchased on 1-01-01
installed on 1-02-01 inuagrated on 1-03-01 test trial done on 1-04-01 and production through it started on 1-05-01.
My question is - from which date would we consider the depreciation charge?.
from which date chould we charge depreiation on it?
installed on 1-02-01 inuagrated on 1-03-01 test trial done on 1-04-01 and production through it started on 1-05-01.
My question is - from which date would we consider the depreciation charge?.
from which date chould we charge depreiation on it?
19 October 2009
Hi,
With respect to the date of capitalisation there are few principles when you read AS6,AS10 and also the principles on IFRS IAS 16
a) When a new project is capitalized, the criteria for capitalization date is the date of Commercial production. Thus when there are many mahcineries/assets constructed or purchased and thereafter a trial run is done, the capitalization date will be the date of final approved commercial production complying with all the output quality norms.
b) For additions made to existing plant for replacements or extension will be based on the date of putting into use. So the date will be the start date of using the machine.
You can accordingly apply the principles in your case.
Rgds
Srinivasan
With respect to the date of capitalisation there are few principles when you read AS6,AS10 and also the principles on IFRS IAS 16
a) When a new project is capitalized, the criteria for capitalization date is the date of Commercial production. Thus when there are many mahcineries/assets constructed or purchased and thereafter a trial run is done, the capitalization date will be the date of final approved commercial production complying with all the output quality norms.
b) For additions made to existing plant for replacements or extension will be based on the date of putting into use. So the date will be the start date of using the machine.
You can accordingly apply the principles in your case.
Rgds
Srinivasan
19 October 2009
Depreciation has to be charged when commercial production has been commenced.
So in your case depreciation has to be charged from 1-5-2001.
So in your case depreciation has to be charged from 1-5-2001.
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?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
