Institute of Chartered Accountants of India (ICAI)
Sub: Application Guide on the Provisions of Schedule II to the Companies Act, 2013 is no longer effective as the Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to the Companies Act, 2013 has been issued.
The Corporate Laws & Corporate Governance Committee (CL&CGC) of the Institute of Chartered Accountants of India (ICAI) had issued an Application Guide on the Provisions of Schedule II to the Companies Act, 2013 in February, 2015.
Subsequently, the Research Committee of ICAI issued the Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to the Companies Act, 2013 in February, 2016.
This is to mention here that since the authority of the Guidance Notes issued by ICAI is above than the Application Guides issued, the Application Guide on the Provisions of Schedule II to the Companies Act, 2013 is no longer effective and stands withdrawn from the date the Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to the Companies Act, 2013, became applicable i.e. for accounting periods beginning on or after April 1, 2016; though its earlier application was encouraged.
Accordingly, members are requested to please note.
(CA Dhinal Shah)
Chairman, Corporate Laws & Corporate Governance Committee