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Aug 20, 2015 · As per Schedule II, useful life is either (i) the period over which a depreciable asset is expected to be used by an entity; or (ii) the number of production or similar units expected to be obtained from the use of the asset by the entity.
Jul 24, 2023 · Depreciation Rate Chart under Companies Act, 2013 as per SCHEDULE II, including useful lives for computation. Analysis of Schedule II and guidelines for assets.
Oct 7, 2020 · Depreciation as per new companies act is allowed on the basis of useful life of assets and residual value. Depreciation rates are not given under the new companies act.
USEFUL LIVES TO COMPUTE DEPRECIATION. PART ‘A’. 1. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value.
Mar 18, 2020 · Depreciation Rates and Useful Lives. Schedule II of the Companies Act provides an exhaustive list of the rates which companies should use to provide depreciation and amortisation. The rates are given below for reference: Depreciation-Rates-under-the-Companies-Act-2013.
The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. For the purpose of this Schedule, the term depreciation includes amortisation.
The useful life to compute depreciation of the asset has been taken as per Part C of Schedule II. The residual value of an asset has been taken as 5% of the original cost of the asset.
Apr 11, 2015 · Subject to Parts A and B above, the following are the useful lives of various tangible assets: Depreciation Rate Chart as per Schedule II of The Companies Act 2013. Notes.— 1. “Factory buildings” does not include offices, godowns, staff quarters.
Under Companies Act, 2013, The depreciation is calculated on the basis of the useful life of assets and not on the basis of the rate of depreciation. Reference Chart of Useful Lives – http://www.mca.gov.in/SearchableActs/Schedule2.htm
Introduction. Under the Companies Act, 2013 (2013 Act), depreciation accounting assumes a new order, from a regime of prescription based depreciation rates, the new law now provides only indicative rates and requires management to exercise judgement in arriving at rates for depreciation based on the expected usage pattern of assets.
