Depreciation under Companies Act, 2013
Depreciation under Companies Act, 2013 – Practical Guide on WDV Method, SLM, Useful Life & Calculation Depreciation is one of the most significant accounting concepts under the Companies Act, 2013. Every company having fixed assets is required to charge depreciation appropriately in its books of accounts so that financial statements reflect a true and fair view of the financial position of the company. In practical experience, many businesses and accounting professionals face confusion regarding: Written Down Value (WDV) Method Straight Line Method (SLM) Useful life of assets Residual value Accumulated depreciation Depreciation formulas Difference between Companies Act and Income Tax depreciation This article explains the concept of depreciation under Companies Act, 2013 in a practical and simplified manner with primary focus on the WDV method, which is commonly followed by a large number of companies in India. Legal Provision Governing Depreciation Depreciation under Compan...