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Depreciation - Accounting Charge as per statute and Technology

By Anand Jammalamadaka posted 07-16-2015 08:47 PM

  
It is known that Depreciation  on the assets is a charge to  Revenue towards wear& tear and obsolescence asper scheduled  standard rates . we are aware that there are rapid technology advances for various classes of assets deployed at varying degrees. when these are applied  and commercialized , this is bound to affect working life of assets profoundly ,at least in certain classes of assets .Obviously this would influence(ought to) depreciation charge with all other implications.  How often we  are factoring in  technical Improvements into depreciation charges with modified rates. We need to look into these aspects and ensure that accounting is kept in pace with related Technology as against application of standard rates ( where ever if this is not done) .May be such linkup can be made explicit while framing Accounting standard ( now they are principle based )
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