In the year 2016-17, an entity has acquired a new freehold building with a useful life...
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In the year 2016-17, an entity has acquired a new freehold building with a useful life years for Rs. 90,00,000. The entity desires to calculate the depreciation charge per annum using straight-line (withnoresidualvalueoflifts&fixturesattheendoftheirusefullife)asfollows: of 50 a method. It has identified the following components Compone Useful life Cost nt (Years) Infinite Rs. 20,00,000 Rs. 10,00,000 Land Roof 25 Lifts 20 Rs. 5,00,000 Fixtures 10 Rs. 5,00,000 Remainder of building 50 Rs. 50,00,000 Rs. 90,00,000 You are required to calculate depreciation for the year 2016-17 as per componentization method. In the year 2016-17, an entity has acquired a new freehold building with a useful life years for Rs. 90,00,000. The entity desires to calculate the depreciation charge per annum using straight-line (withnoresidualvalueoflifts&fixturesattheendoftheirusefullife)asfollows: of 50 a method. It has identified the following components Compone Useful life Cost nt (Years) Infinite Rs. 20,00,000 Rs. 10,00,000 Land Roof 25 Lifts 20 Rs. 5,00,000 Fixtures 10 Rs. 5,00,000 Remainder of building 50 Rs. 50,00,000 Rs. 90,00,000 You are required to calculate depreciation for the year 2016-17 as per componentization method.
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Componentization method calculates depreciation based on different depreciation periods fo... View the full answer
Related Book For
Applying International Financial Reporting Standards
ISBN: 978-0730302124
3rd edition
Authors: Keith Alfredson, Ken Leo, Ruth Picker, Paul Pacter, Jennie Radford Victoria Wise
Posted Date:
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