Companies Act 2013, Depreciate Over Life/Remaining Life Of Assets

Hi Experts,

As per New Companies Act 2013, depreciate over the life/remaining life of assets is applicable w.e.f. 1st April, 2014.

Schedule II says,  "However, Schedule II is silent on the method to be adopted for the depreciation. So a company can follow any method of depreciation".

Hence going forward, our company is going to depreciate the assets over the remaining life but using WDV method only not STL method.

If STL method means, the following formula works:

Depreciable Amount = Historical cost/ revalued value – Residual value

Amount of depreciation P. a. =Depreciable amount / Remaining useful life

If WDV means, the following formula works: