India Accelerated Depreciation

[Prem Raj]

Hi,

We have a heavy equipment, which we bought 2 years back. Initially we considered 5 years life.
But, presently we are not using that machine, we are NOT writing off the assets either, instead we are depreciating 100% in this financial year.

I need IFRS/IAS standard to support this action, with some explanation.

Thank you for your support.

 

[DrStrangeLove]

You're not going to be able to depreciate it 100% this year on an IFRS GAAP basis without selling the equipment outright to recover the cost and get the equipment off your books. There's no reasonable depreciation method that will let you do that, especially since the equipment definitely has a useful life beyond this year.

You might--might!--get away with depreciating the equipment on a tax basis if there's applicable tax law where you are (I'm assuming you're in India) that lets you do it. But IFRS GAAP isn't going to let you do it.

Sorry, bruh.