SportzShortie6169
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...by net book value? Eg.
Co. A & Co. B are within same group of companies.
Co.A transfer asset to Co. B at net book value.
Cost & accumulated depreciation of assets were 1000 & 300 respectively recorded at Co. A's book
Therefore, the transfer cost of Co. B is 700.
Depreciation rate for group on assets is 10% per annum as the estimated useful life is 10 years.
Hence, the depreciation charge by Co. B whether should be based on transfer cost (700) or original cost as Co. A(1000)?
Any adjustment to be done on conso level for the depreciation method use? Eg. under/over provision of depreciation
Co. A & Co. B are within same group of companies.
Co.A transfer asset to Co. B at net book value.
Cost & accumulated depreciation of assets were 1000 & 300 respectively recorded at Co. A's book
Therefore, the transfer cost of Co. B is 700.
Depreciation rate for group on assets is 10% per annum as the estimated useful life is 10 years.
Hence, the depreciation charge by Co. B whether should be based on transfer cost (700) or original cost as Co. A(1000)?
Any adjustment to be done on conso level for the depreciation method use? Eg. under/over provision of depreciation