Depreciation requirement before dividend: companies must provide statutory depreciation and use consistent methods before declaring dividends. Amendment requires companies to provide minimum depreciation before declaring dividends; prior depreciation already charged must be deducted so only the written down value is further depreciated. The term 'original cost' is used to determine the specified period and annual instalment under the straight line method. Immovable properties held as investments are fixed assets and must be depreciated using income tax rule rates. Companies may continue using the straight line method or adopt different methods for different asset classes if applied consistently; depreciation arises with efflux of time and must be provided even for unused assets.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Depreciation requirement before dividend: companies must provide statutory depreciation and use consistent methods before declaring dividends.
Amendment requires companies to provide minimum depreciation before declaring dividends; prior depreciation already charged must be deducted so only the written down value is further depreciated. The term "original cost" is used to determine the specified period and annual instalment under the straight line method. Immovable properties held as investments are fixed assets and must be depreciated using income tax rule rates. Companies may continue using the straight line method or adopt different methods for different asset classes if applied consistently; depreciation arises with efflux of time and must be provided even for unused assets.
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