24 July 2010
If company is making loss from past two years whether it is suitable that we should not provide for depreciation in the current year. However depreciation is not provided in the previous years also. Is it correct. If it is not correct please suggest the correct treatment?
Many thinks why claim depreciation as per Income Tax if there is loss since it can be claimed later when there is profit. But it is wrong there should be uniformity in policies adopted.
So you are advised to claim depreciation as usual and carry forward for adjustment in case of losses.
CAclubindia
