Dear Murali,
You mean as per standard SAP program logic is written this or standard Asset Accounting procedure is like that?
It has reference to Note No 4 of Schedule XIV to Companies Act (ref Sec 205 & 350). The extract of the Note is reproduced below & shaded in yellow color:
Hope it suffices the requirement.
Notes
- “Buildings” include roads, bridges, culverts, wells and tubewells.
- “Factory buildings” does not include offices, godowns, officers’ and employees’ quarters, roads, bridges, culverts, wells and tubewells.
- “Speed boat” means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometres per hour in still water and so designed that when running at a speed it will plane, i.e., its bow will rise from the water.
- Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed.
Please check and revert.
Regards,
M.Mohan.