A private limited company has only one fixed asset which is an immovable property building. Is it compulsory to charge depreciation on this as per Companies act or Accounting standards
17 September 2010
Whether there is one assets or 1000 is is compulsory to charge Dep. Without charging Dep your co can't eligible for any Dividend and your accounts does not considered True & fair.
21 September 2010
Hi Jyoti, after enactment of Companies (Accounting Standard) Rules, 2006, AS become part of cos. Act. Hence it is compulsory for every co. to follow AS. Previously it was just sec. 205, but now, scenerio has changed. Regards, CA Shakuntala Chhangani
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