Depreciation

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Anil Batheja (Querist)
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01 August 2010 If a private limited company has not provided depreciation in accounts from its incorporation, then if management wants to provide depreciation from financial year 09-10 what should they do.? If they want to provide now then whether they should for this year only or for previous years also. Please suggest the correct treatment.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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01 August 2010 Previous years' Depreciation is required to be provided from initial year and would be shown as Prior Period Adjustments.

Current year's depreciation would be provided as per rates prescribed under Companies Act.