Dharmesh (Student) (1025 Points)
01 July 2016is depreciation rate required to be calculated every year in case of wdv method. For eg in the first year the rate will be calculated by dividing the scrap value / gross cost. So in the subsequent year do we have to recalculate the rate based on scrap value / wdv ?
formula : 1-(s/c)^(1/n)*100
where c = gross cost / wdv
CA Sagar Shah
(Professional)
(68 Points)
Replied 01 July 2016
No, the rate will be same unless management differs with the Scrap value fixed in previous year & you do not have to change WDV every year.
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