Fixed assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2014 Dear Expert,

During preparation of fixed assets/ dep. chart what should consider & what are the most important aspect. Please explain in brief.

thanks

Ganeshbabu K

Ganeshbabu K (Expert)
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10 June 2014 Whether depreciation is properly Charged
Whether client maintains FixedAsset Register as per requirements of companies act
Whether Accumulated depreciation was correct
Arthemetical accuracy
.
.
.

Sandeep Dharar

Sandeep Dharar (Expert)
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10 June 2014 U must note that if any assets is purchased during the year, then depreciation rate become half, if it is purchased after 182 days from the beginning of the FY. If the assets r sold then u must see if the company is following the policy of Depn. on sold assets. If separate provision is there for Depn. on assets, then u must disclose depn. to that account, and reduce the depn. on assets sold from that ledger.

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Ganeshbabu K

Ganeshbabu K (Expert)
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10 June 2014 Depreciation on companies act is caluculated on
pro-rata basis and not on basis of half year or more than half year which is the case to be taken in income tax act depreciation caluculation