There are various views are possible for determining remaining useful life on transition from Schedule XIV to Schedule II if an asset has been used on double/ triple shift basis in past years.
For example, in the case of plant above, one view is that the asset has remaining Schedule II life of 12 years, i.e., 15 years 3 years. The second view is that remaining Schedule II life of the plant is 9 years, i.e., 15 years 6 years (considering the plant was used on a triple shift basis on all days in the previous three years).
The third view is that remaining Schedule II life of the plant is 6 years, i.e., 15 years 9 years (considering the plant was used on a triple shift basis on all days in previous three years and each shift is considered to depreciate the asset equally).
The above extract say before charging depreciation on triple shift, the life of Assets should be reduced to half in second and third view. Argues are there whether to consider the same from the beginning of uselife of assets or for remaining uselife.
However, Note 5 to SCHEDULE II of Companies Act, 2013 says
The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period.
