17 May 2008
Hello Everybody, I have a query regarding Depreciation in case of a Co. The co. did not charge Depreciation in the year 2006-07 on new addition to Plant & Machinery. How to calculate the Depreciation for 2007-08 ?
Is it necessary to charge Depreciation for 2006-07? What is the recourse in this case.
17 May 2008
If the company has not charged any depreciation on P&M, then first of all you should check that whether they have put that machine to use in that year or not. If they have not put that machine to use at all in the year of purchase, they may or may not charge depreciation in that year.
However, if they have put that machine to use but still havenot charged depreciation on it, you bring this thing to their notice or qualify your report.
CAclubindia
