Useful life certifications
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IT Global provides Useful Life Certificates for plant, machinery, equipment and other fixed assets. The certificate provides a technical assessment of the expected useful life of an asset, particularly where the estimated life is required to be supported by technical evaluation or differs from the standard life prescribed under applicable accounting requirements.
Technical Assessment of Asset Life
Useful life depends on factors such as the nature of the asset, usage, operating conditions and maintenance. JIT Global assesses the relevant technical factors before determining the estimated useful life.
The assessment may consider:
- Age and date of commissioning
- Type and specifications of machinery
- Operating hours and usage pattern
- Maintenance and repair history
- Current physical condition
- Expected operating performance
- Technological obsolescence and replacement factors
Schedule II of the Companies Act, 2013 provides prescribed useful lives for various classes of assets, while a different useful life may be technically supported and appropriately documented where applicable.
Useful Life Certificate for Business Requirements
JIT Global can provide technical certification where businesses need independent support for their estimated useful life of plant and machinery.
The certificate may be required for:
- Accounting and depreciation purposes
- Financial reporting
- Asset assessment and valuation
- Mergers, acquisitions or restructuring
- Technical and commercial documentation
- Other specific business requirements
