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Depreciation start date for tools not yet put to use having useful life of more than one year

Financial Reporting

When to start the depreciation calculation for tools and spares having useful life of more than one year i.e. 1year 1month and are not yet put to use Is that ready to use concept only., and if so, what if, the asset i.e stores and tools got depreciated before put to use


Valli Kotapati

Valli Kotapati

CA Final

5

16-Mar-23 10:56

193

Answers (2)

Once available for use. it may be possible that the amounts are depreciated before put to use and the tools would be shown at residual value if any. Please note, it may not be material in terms of amount.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

16-Mar-23 19:26

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