• Dr. Usha Rajendra Pillewar
• Dr. Sujit G. Metre,,

Tangible physical assets like Plant and Machinery diminish in due course of time after use. The depreciation of such assets is considered in the financial statements of the companies for P& L statements and Balance sheets. After a certain life of assets the assets are to be replaced and upgraded. Due to technological changes and additional features the cost of the assets goes on increasing where as the Book Value of the assets is decreasing. Some companies make regular provisions for replacement of such assets where as some might not. The Firms need to make financial provisions for replacement of these assets and normally the provisions are made based on book value. Even those companies which make provisions fall in dilemma of whether the provisions to be made as per the market value or the book value. The present study has been undertaken by considering the perception of working chartered accountants and financial executives of the industry. It is necessary to understand how the depreciation calculations based on Market value affects the financial statements as compared to Book Value. The study focuses on the preparedness of companies for replacement of the assets considering changes in the GAAP and International Accounting Standards especially considering the matching principle module of Depreciation. The Researcher also tries to understand the probability and its effects on the allotment of Depreciation in Reserves and Surplus.

Depreciation, Book Value, Market Value, GAAP

"Depreciation Calculation And Its Impact On Replacement Of Assets – A Study Of Vidarbha Based Manufacturing Units", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 8, page no.388-397, August-2018, Available :http://www.jetir.org/papers/JETIR1808698.pdf

"Depreciation Calculation And Its Impact On Replacement Of Assets – A Study Of Vidarbha Based Manufacturing Units", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 8, page no. pp388-397, August-2018, Available at : http://www.jetir.org/papers/JETIR1808698.pdf