Accounting for depreciation is generally a significant matter for the purpose of true and fair determination of the operating results of a company as reflected in its statement of profit and loss as well as its financial position as depicted in its balance sheet. Though Accounting Standard (AS) 6, Depreciation Accounting has already been issued by the Institute, in the case of companies, some issues have arisen due to the practical application of Schedule II to the Companies Act, 2013, in the context of AS 6.
With a view to provide an authoritative position of the Council of the Institute on the issues arising out of Schedule II to the Companies Act, 2013, the Research Committee of the Institute has formulated this Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013.
The publication is culmination of joint efforts of two sub organs of ICAI – Research Committee and Accounting Standards Board. I would like to compliment their respective Chairman CA. Subodh K. Agrawal, Past President and CA. Sanjeev K. Maheshwari, respective Vice-Chairmen, CA. Sanjiv Kumar Chaudhary, and CA. S. Santhanakrishnan and their all other members. I would also like to compliment other colleagues in the Council who have contributed immensely towards bringing out this publication.
I am confident that this Guidance Note will be immensely useful to the members of the Institute as well as to others concerned.
Kolkata February 6, 2016 CA. Manoj Fadnis President