CA D Santosh Kumar Patro (Asst. Manager Finance & Controlling) (88 Points)
04 July 2009Hi friends
Can some body tellabout....
In SLM method of depreciation can we show 0(zero) WDV of an assets on full deprecaition was charged?
Max Payne
(employed)
(2569 Points)
Replied 04 July 2009
Dear friend,
if we are following SLM method, then as per AS-6, we should amortise the 95% of the cost of the asset over its useful life. the loss or profit if any arising on the disposal of the asset at the end of its useful life should be taken to P&L.
However, there is provision in Income tax Act for Power sector companies to follow 10% SLM and write off entire cost. in this case the WDV in the last year becomes zero.
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