Assurance-GSS
51 Points
Joined May 2011
Dear Madam/sir,
A company was incorporated on 14/03/2011. The company purchased fixed assets during August 2011 and installed it for operations. Other than the purchase of fixed asserts, company didnt carry any operations during the FY 2011-12. When finalising the accounts for audit, whether the company can charge depreciation for FY 2011-12 ? If the company can charge depreciation, then whether date of purchase or date of put in to use is considered ? The company started commercial productions from May 2012 onwards.
Please guide me.
Thank you.