Companies depreciation 2013
This query is : Resolved
16 September 2016
I have a query regarding depreciation of a company which was incorporated before 1980, it is very difficult to find information of assets date of purchase from 1980's. however useful life of such assets has been completed. so how can we account these assets as per companies act 2013 without confirmed date of purchase.
16 September 2016
Hi,
You have two options for the same.
1) As your saying that the purchase is almost around 1980, the useful life of such assets would have been completed by now as per CA ACT 2013. You can charge the opening WDV of such assets to opening retained earnings and close it once and for all.No need to carry it further and its not permissible also.
2) If you feel that the assets have still a useful life and you have done some sort of repair to extend its useful life, then please get a Chartered Engineers certificate stating the same. He will mention in his certificate the balance useful life based upon his technical evaluation and working condition of the machinery.
Hope this clarifies your query.
You have two options for the same.
1) As your saying that the purchase is almost around 1980, the useful life of such assets would have been completed by now as per CA ACT 2013. You can charge the opening WDV of such assets to opening retained earnings and close it once and for all.No need to carry it further and its not permissible also.
2) If you feel that the assets have still a useful life and you have done some sort of repair to extend its useful life, then please get a Chartered Engineers certificate stating the same. He will mention in his certificate the balance useful life based upon his technical evaluation and working condition of the machinery.
Hope this clarifies your query.
Message likes :
1 times
16 September 2016
thanx!! but I am little confused regarding date of purchase of such assets which is not available.then what should i do?
16 September 2016
Based upon the depreciation amount in your financials, you can work out on the approx date of purchase.
Message likes :
1 times
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
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- Income Type for interest from government bonds
- Not a CA , can we prepare balance sheet
- TCS ON SOFTWARE SALES
- SHARE TRANSFER PRIVATE LIMITED COMPANY
- Car Purchases in Daughter Name
- Invoicing in different currency
- ITR 6 Schedule CFL and UD Issues
- Gstr 9 2023-24
- GSTR-9 HSN Summary and Credit Note without item
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- GST RCM not shown in GSTR-3B
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
