Depreciation of residual value- if useful life is 0
Mansi devani (CA) (73 Points)
18 July 2016Mansi devani (CA) (73 Points)
18 July 2016
Shubham Gupta
(Business Consultants)
(2077 Points)
Replied 18 July 2016
it will be shown at residual value in balance sheet
CA Kishore D
(Management Consultant | Trainer)
(324 Points)
Replied 23 July 2016
Mansi
For the purpose of control, it is recommended not to write off the assets. If the asset is completely written off, then control over the asset cannot be established. Hence, the ideal practice would be to write down to asset to Re.1 or Rs. 100 till it is held by the business. Once it is sold, scrapped or physically disposed off, it can be written off.
This is how many multi-nationals do their fixed asset accounting.
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