IndigoLearn

Forums

Back

Managerial remuneration - account

Accountancy

For the computation of managerial remuneration the questions quote two depreciation of a company One as per the act and another what the company has charge from p&l So does it possible that the depreciation as per the Act and provided depreciation would be different??

Atharv Sankliya

CA Final

★ 3K+

22-Jan-23 23:52

293

Answers (3)

Yes, it might be possible that they are different. In that case, you have to add back the depreciation provided by the company and then deduct the depreciation as per the Act. This is because we always take the depreciation provided by the Act to be correct.

Varshaa M

CA Final

★ 35K+

23-Jan-23 08:58

Varshaa M

But how it is possible that they are different?

Thread Starter

Atharv Sankliya

CA Final

★ 3K+

23-Jan-23 09:02

Yes that difference may due to some provisions of act and depreciation in income tax allows only wdv method unless there is exemtion by act ex for electricity company Refer AS 22

prasad B

CA Final

★ 3K+

23-Jan-23 09:21