Expert Advisory Committee
ICAI-Expert Advisory Committee
Options:

1.19     Query

 

Change in the Manner of

Computing Depreciation.

 

When an existing company proposed to switch over from the reducing balance method to the straight line method of computing depreciation:

 

1.         Whether it can change the manner of computing depreciation only in respect of assets installed after the commencement of the Companies (Amendment) Act, 1960?

 

2.         Whether it can apply the rates under straight line method in respect of the assets installed prior to the commencement of Companies (Amendment) Act, 1960, on the written down value obtained on the commencement of the said Act.

 

                       Opinion                                                                                            April 1, 1971

 

            1.            Yes

            2.            Yes.

_________________________