Useful Lives for depreciation on intangible assets-Amendment to Schedule-II. Companies not required to follow IndAS to follow 2006 Rules.

Useful Lives for depreciation on intangible assets-Amendment to Schedule-II. Companies not required to follow IndAS to follow 2006 Rules.

GOVERNMENT  OF INDIA
MINISTRY  OF CORPORATE  AFFAIRS

Notification

New Delhi, 17 November, 2016

G.S.R.(E) ….In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendments to amend Schedule IIto the said Act, namely:-

1. In the Companies Act, 2013, in Schedule II, under Part ‘A’, in para 3, in sub- paragraph (ii), for the brackets, letters and words starting with “(ii) For intangible” and ending with the words “force shall apply”, the following brackets, letters and words shall be substituted,namely:-

“(ii) For intangible assets, the relevant Indian Accounting Standards (Ind AS) shall apply. Where a company is not required to comply with the Indian Accounting Standards (Ind AS), it shall comply with relevant Accounting Standards under Companies (Accounting Standards) Rules, 2006.”

2. This notification shall be applicable for accounting period commencing on or after 01st April, 2016

F. No. 17/60/2012-CL-V

Amardeep Singh Bhatia
Jt, Secretary

Note:
The hitherto para (ii) was as under:

“For intangible assets, the provisions of the accounting standards applicable for the time being in force shall apply, except in case of intangible assets (Toll Roads)created under ‘Build, Operate and Transfer’, ‘Build, Own, Operate and Transfer’ or any other form of public private partnership route in case of road projects”