We are having WDV/reducing balance method for depreciation. There were different WDV depreciation rates defined in the Companies Act for different asset classes like Plant & Machinery 13.91%, Building 10%, etc.
Now new Companies Act, 2013 has defined useful life of different classes of assets
e.g. Plant & Machinery 15 years, Building 30 years, computer 3 years, etc. Residual value shall be 5% of acquisition value.
All the existing assets as on 31.03.2014 has to be depreciated during its balance useful life.
e.g. A P&M was purchased 10 years ago. It was depreciated at 13.91% WDV rate. Now net book value as on 31.03.2014 shall be depreciated during next 5 years (remaining useful life). We have more than 6000 assets which have different remaining useful life, it means each asset will have different rate of depreciation from now onwards.
As per my knowledge there is no configuration to create depreciation key which automatically calculates WDV depreciation rate for remaining useful life.What to do? Create 6000 different depreciation keys?
Thanks & Regards
Shripal Bhavsar