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Can we stop charging depreciation

Atharv Sankliya (1323 Points)

27 September 2022

can we stop charging depreciation on a fixed assets
what are the situation when one can stop charging it ?

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4 Replies

Yasaswi Gomes new (Finance ) (4492 Points)
Replied 27 September 2022

Held for sale classification during the period of disposal of asset. Apart from that, asset is depreciated even during it's idle time and depreciated more during overshift.

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sabyasachi mukherjee (27117 Points)
Replied 27 September 2022

Not necessarily

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Yasaswi Gomes new (Finance ) (4492 Points)
Replied 28 September 2022

Using the units of production depreciation is why you might be thinking the above might not be the necessary reasons enough to stop depreciation. Here as well the business is a going concern.

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Atharv Sankliya (1323 Points)
Replied 28 September 2022

Ok suppose depreciation is charged on a fixed assets on straight method say ₹1 lac /year if the machine is overused during a year how it is recorded ??