Day: December 27, 2021

In recent years, due to an abnormal rise in the price level, it has been suggested in many quarters that accountants should modify the practice that so far prevailed of calculating the provision for depreciation on historical cost (i.e., original Read More …

Apart from fixed assets in respect of which depreciation must be provided in the manner a forementioned, it also has to be provided on semi-permanent assets, e.g., patents, trade marks, blocks and dies, etc. Since the auditor is not in Read More …

Section 205(1) prescribes that if a company has not provided for depreciation for any previous financial year it shall, before declaring, or paying dividend, provide for such depreciation : either out of the profits of that financial year, or  out Read More …

On account of the provision under section 205 that, no dividend shall be declared except out of profits arrived at after providing for depreciation in accordance with the provisions of the Act, it has become obligatory for every company distributing Read More …

Clause 3(iv) of Part II to Schedule VI to Companies Act, 1956 provides that the Profit and Loss Account must disclose the amount of depreciation, renewals or diminution in value of the fixed assets. If such a provision is not Read More …

The Department of Company Affairs (Now Ministry of Company Affairs), Government of India, issued a notification during December 1993, which has inserted as Note No. 8 in Schedule XIV to the Companies Act, 1956. Notwithstanding anything mentioned in Schedule, depreciation Read More …