BAnner

Accounting

NEW METHOD OF COMPUTING DEPRECIATION

Computation of depreciation was earlier governed by provisions of Schedule XIV of the Companies Act 1956. With the passing of Companies Act 2013, computation of depreciation is governed by the provisions of Schedule II.

 

The Companies Act 2013 requires companies to charge Depreciation as per Schedule II which is based on useful life of assets. Further the new Companies Act has introduced the concept of Component Accounting.