15 July 2010
Is there any provision in Co. Act that if value of fixed assets (suppose P&M) purchased during the year exceeds 10% of WDV then it is to be capitalised ? Or does AS-10 contains any clause regarding it ?
15 July 2010
There is a proviso to note no.8 of schedule XIV of the Companies Act,1956 which reads as follows. 'provided that where aggregate actual cost of individual items of plant and machinery costing Rs. 5,000/- or less constitutes more than 10 % of the total actual cost of plant and machinery, rates of depreciation applicable to such items shall be the rates specified in item 11 of this schedule'.
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