Triggered at period close or on a depreciation policy change
Depreciation & Compliance Agent
Most FAR tools depreciate one way. Indian statutory reporting needs two: Companies Act Schedule II for the financial statements, and Income Tax Act §32 block-of-assets (with the 180-day rule) for the tax return. This agent runs both books natively, every period, for every asset class.
What it does
- •Computes Schedule II and IT Act §32 depreciation schedules in parallel, per legal entity
- •Applies the 180-day put-to-use rule and block-of-assets treatment automatically
- •Drafts journal entries and disclosure notes for the close
- •Surfaces variances between books before they become audit findings
A typical scenario
Quarter-end close arrives and 60 assets were capitalized mid-quarter — some before, some after the 180-day cutoff. The agent runs Schedule II and IT Act §32 depreciation for every asset in parallel, applies the 180-day rule correctly to each block, and drafts the journal entries and disclosure notes. The accountant reviews a variance summary instead of rebuilding two depreciation schedules by hand.
Target metrics
- Dual-book accuracy target
- 100%
- Close-cycle reduction
- Weeks → days
- Target audit adjustments
- ~0
Frequently asked questions
- Can the Depreciation & Compliance Agent post directly to my ledger or file externally?
- No. It follows AssetIQ's draft-don't-commit model — it can propose journal drafts, exceptions, or transfer orders with a confidence score and evidence trail, but a human with approval authority must review and post anything that reaches your ledger, the GST portal, or an e-way bill system.
- What happens if it isn't confident about a result?
- It attaches a confidence score to every proposal. Below a per-agent, per-materiality threshold, the item routes to a human for mandatory review, even if policy would otherwise allow it to auto-commit as an internal draft.
- Is every action it takes logged?
- Yes. Every run records its trigger, inputs, model version, every tool call and result, its confidence score, the human who approved it (if any), and the resulting records — feeding directly into AssetIQ's immutable, hash-chained audit trail.