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Uabsorbed Deperciation

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(Querist)
10 September 2010 I just want to know accounting treament of unabsorbed deperciation.

And what is unabsorbed deperciation ? How to calculate it.
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
10 September 2010 Unabsorbed depreciation is the depreciation for which the profit is not sufficient to absorb the depreciation charge.

Eg: Profit before depreciation 100
Less: Depreciation 150
Unabsorbed dep 50

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