Computing Depreciation As Per India Companies Act 2013
(Doc ID 2097188.1)
Last updated on AUGUST 23, 2021
Applies to:Oracle Assets - Version 12.2.4 and later
Information in this document applies to any platform.
There is specifically states:
"For existing assets, as of now As per Companies Act 1956 they are depreciating based on WDV method. Now with effect from 1st April 2014, all
these assets needs to be moved to Straight line / Life based (STL) methods and remaining cost of the asset needs to be depreciated in remaining life of the asset.
In Oracle assets, We can achieve it by changing the depreciation method of the asset from WDV to STL method and amortizing the methods change
transaction with an amortization start date as 1st April 2014."
Thus the solution/supported method is to move the assets from existing WDV method to STL Method. As per company law both methods can be used, thus
customer is using WDV not SLM . ER requesting solution of WDV not SLM.
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