The Companies Act, 2013 has introduced one of the most important provisions for companies as well as auditors in the form a new method of calculating depreciation as per Schedule II Part C of the Companies Act 2013. Apart from this, it has brought far reaching changes in other areas, the spectrum of financial reporting has widened, which entails a higher responsibilities on those associated with financial reporting, be it the auditors or the management. Revision of AS 10 “Property, Plant and equipment” has further introduced/amended several concepts relating to depreciation which has brought the computation of depreciation in line with Ind AS 16 on “Property, Plant and Equipment.”

This book is a very useful guide for professionals, covering detailed discussion on various provisions which need to be considered for the purpose of computing depreciation under Companies Act, 2013 as well as 10 (Revised).


Key features:

• Extensive discussion on the concept of useful life under Companies Act, 2013 vis-a-vis the concept of minimum rates of depreciation as specified under Companies Act, 1956

• Detailed discussion on the concept of “component accounting”

• Covers transitional provisions pertaining to depreciation due to shift from the concept of minimum rates of depreciation to the concept of useful life

• Discussion on “amortisation principles” for intangible assets

• For ease of reference, covers line-by-line comparison of effective rates of depreciation under the Companies Act, 1956 and the Companies Act, 2013 both under SLM and WDV Method

• Covers impact of change in depreciation rates on various industries

• Includes detailed guidance on important practical issues like residual value etc.

• Disclosure checklist on relevant requirements relating to depreciation under the Companies Act,2013, AS 10 (Revised) and Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013

• Incorporates the Guidance under the Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013 at relevant places

• Incorporates the text of Schedule XIV to the Companies Act, 1956, Schedule II to the Companies Act, 2013, AS 10 (Revised) on “Property, Plant and Equipment”, along with other relevant annexures