#CorpLaw The Ministry of Company Affairs issued a statement providing better clarity that the useful lives of assets and the residual value specified in Schedule II should be ordinarily used by companies under the new Companies Act. In case, the companies are using values that are different from these, they would be required to adequate disclosures in their financial statements to justify the variation along with technical advice. Along with the same, the concept of component accounting has also been included under the new Companies Act. In case of an fixed asset, where there are significant individual components having different useful lives, then each such component would have to be depreciated separately. According to the Ministry, these requirement would be voluntary this fiscal and mandatory for financial statements with respect to fiscal starting on or after April 1, 2015.
Posted on: Fri, 05 Sep 2014 04:00:01 +0000
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