1- Could anyone provide me the information on the prescribed rates, to be used for depreciation, by CBR with regards to different assets?
2- How do we classify I.e. fised asset or expense, under normal circumstances the value of mobile hand sets / normal telephone sets?
Regards,
Asif
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Asifkhan</i>
<br />1- Could anyone provide me the information on the prescribed rates, to be used for depreciation, by CBR with regards to different assets?
2- How do we classify I.e. fised asset or expense, under normal circumstances the value of mobile hand sets / normal telephone sets?
Regards,
Asif
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I guess i have asked something which no body knows, is it true guys?
Rates for depreciation have been clearly stated in the ordinance. As they keep of changing so I may not be quite certain. I would recommend to consult the ordinance.
Did not get your second question.
Shoaib
Thanks Shoaib.
My second question was with regards to buying of Cell phones and normal telephone sets. Now question arises,
Shall we capitalize the value of these items or not? If capitalize them than as you said should get the rate for depreciation from ordinance, am i right?
Regards,
Asif
Following is the capitalization criteria as per the IAS
1)asset has useful life of more than one year
2)It loses value through wear and tear
3)economic benefit is expected in future
Same is the criteria for CBR
There is nothing mentioned regarding amount. but materiality is one of the basic accounting concepts. So u must consider materiality while capitalizing anything...
and Depreciation
building-general->5% Factory etc->10%
furniture and plant->10
computers->30
Books etc->20
Dear Please refer to 3rd Schedule of Income Tax Ordinance 2001 updated June 2006 which u can dowload from CBRs Site.
I. Building (all types).
10%
II. Furniture (including fittings) and machinery and plant (not otherwise specified), Motor vehicles (all types), ships, technical or professional books.
15%
III. Computer hardware including printer, monitor and allied items [,machinery and equipment used in manufacture of I.T. products], aircrafts and aero engines.
30%
IV. In case of mineral oil concerns the income of which is liable to be computed in accordance with the rules in Part-I of the Fifth Schedule.
(a) Below ground installations
(b) Offshore platform and production
installations.
100%
20%]