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Depreciation method
Accountancy
As stated there are different types of methods of depreciation In firms they choose depreciation as per their requirement or it is prescribed by companies act or any other act which method is to be applied in which type of industry As I know, SLM helps firms to save tax by charging a higher amount of depreciation to assets and transferring depreciation to P/L A/C SLM will be allowed in certain industry Which act prescribe which method of depreciation is applicable in which industry [video Time Stamp: 00:02] Video Details ------------- Accounting - CA Foundation (New) Concept and Accounting of Depreciation #8. Methods of Depreciation
Answers (9)
For companies - Company Act recommends useful life. However management can choose a different useful life. For non companies - The management can choose. For Tax purpose - it has to be computed as per tax laws on WDV basis using block method for everyone. Whether companies or individuals. [Too advanced to explain at this level ]
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