If a Company registered before Companies Act, 2013 comes into force and following the WDV method for calculating Depreciation. However with effect from 1st April 2015 the company wants to change the method from WDV to SLM Method. As we know that it is a retrospective change so Company has to change the same from inception. Now what SLM rates to follow i.e. specified depreciation rate as per Companies Act, 1956 or Useful life as per Companies Act, 2013.
Since The Depreciation on fixed asset as per Schedule-II of Companies Act, 2013 became operational from 01/04/2014 vide MCA notification no S.O.902(E) dated 26/03/2014 therefore even if the company is registered before Companies Act 2013 , as on 1st April 2015 it will be guided only be the companies Act 2013 , therefore while changing the method of depreciation from WDV to SLM one need to take help of Schedule - II of companies Act 2013 for rates of depreciation. **Schedule II to the Companies Act, 2013 requires depreciating the asset over its useful life.**
Hello, Now Companies Act,2013 is applicable to the all companies. However there are some section of Companies Act,1956 which are yet to notified in the New Companies Act,2013. MCA has made it clear that with effect from 1st April,2014 Companies Act,2013 will be mandatory for the all companies to follow it and also given some time limit to comply with the condition of the Companies Act,2013. New Deprecation Schedule has been provided in the Companies Act,2013 so it will be correct to follow the Companies Act,2013 provision and not the Old Companies Act,1956. Just go through the provision of New Companies Act,2013