The Companies Act, 2013 has introduced one of the most important provisions for companies as well as auditors in the form a new method of calculating depreciation as per Schedule II Part C of the Companies Act 2013. Apart from this, it has brought far reaching changes in other areas, the spectrum of financial reporting has widened, which entails a higher responsibilities on those associated with financial reporting, be it the auditors or the management. Revision of AS 10 “Property, Plant and equipment” has further introduced/amended several concepts relating to depreciation which has brought the computation of depreciation in line with Ind AS 6 on “Property, Plant and Equipment.” This book is a very useful guide for professionals, covering detailed discussion on various provisions which need to be considered for the purpose of computing depreciation under Companies Act, 2013 as well as AS 10 (Revised).
• Extensive discussion on the concept of useful life under Companies Act, 2013 vis-a-vis the concept of minimum rates of depreciation as specified under Companies Act, 1956
• Detailed discussion on the concept of “component accounting”
• Covers transitional provisions pertaining to depreciation due to shift from the concept of minimum rates of depreciation to the concept of useful life
• Discussion on “amortisation principles” for intangible assets
• For ease of reference, covers line-by-line comparison of effective rates of depreciation under the Companies Act, 1956 and the Companies Act, 2013 both under SLM and WDV Method
• Covers impact of change in depreciation rates on various industries
• Includes detailed guidance on important practical issues like residual value etc.
• Disclosure checklist on relevant requirements relating to depreciation under the Companies Act,2013, AS 10 (Revised) and Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013
• Incorporates the Guidance under the Guidance Note on Accounting for Depreciation in companies in the context of Schedule II to the Companies Act, 2013 at relevant places
• Incorporates the text of Schedule XIV to the Companies Act, 1956, Schedule II to the Companies Act, 2013, AS 10 (Revised) on “Property, Plant and Equipment”, along with other relevant annexures
About the Authors
CA Sanjeev Singhal • Sanjeev Singhal did his graduation from Shri Ram College of Commerce and post graduation from Delhi School of Economics. He is a fellow member of ICAI. He has done his PhD in International Finance from Faculty of Management Studies (Delhi). • He has received the following prestigious awards: Prof. Jai Naraian Vaish Gold Medal at the graduation level for being the topper in B Com (Hons) in the Delhi University Prof. AB Ghosh prize at the post-graduation level for being the topper in Economics Group papers CA Professional Achiever Award 2014 (by ICAI) for excellent contribution to the manufacturing sector and the profession NIRC of ICAI best faculty award He has represented India at the World Accounting forum held at Dubai and was invited to address at the Asian Institute of Technology Bangkok. Besides, he was also invited by Ministry of Finance, Bhutan to deliver lecture on IFRS. He has also contributed extensively to the professional development on IFRS in Nepal in the programs organized by Accounting Standards Board of Nepal • He has conducted MDPs for Corporate Executives, addressed hundreds of national & international seminars on Accounting Standards, IPSAS, IFRS, XBRL, Companies Act etc organised for leading corporate and professional bodies such as ICAI, ICSI, ICWAI, CII, ASSOCHAM, ONGC, HPCL, BHEL, GAIL, NTPC, HPCL, NHPC etc in India and abroad. He is a renowned trainer and an expert in accounting standards and IFRS. • He represented CII and FICCI in the interaction with IASB. • He has published 15 books and over 40 articles on accounting standards, IFRS, Companies Act, etc. His articles have been published in leading print and online journals. • He has also been part of debate on various issues on Doordarshan, CNN IBN etc. He has also done several live programs on accounting standards at Gyan Darshan Channel for members and students of ICAI. • He has been a co-opted member/special invitee on the following: Member, NACAS (National Advisory Committee on Accounting Standards) constituted by MCA (Ministry of Corporate Affairs) under the Companies Act, 2013 CII representative on Accounting Standards Board of ICAI Member, CII, National Financial Reporting Committee CII representative on Cost Accounting Standards Board Chairman-CII Task Force on Accounting and Auditing Standards Co-opted member/ special invitee on the Accounting Standards Board of ICAI Co-opted member/ special invitee on the IFRS implementation Committee of ICAI Special invitee, Research Committee, ICAI for CSR Expenditure CII representative on Auditing and Assurance Standards Board of ICAI • Dr Singhal has contributed extensively for members and students related activities at ICAI. He has contributed study material for ICAI. He has been the technical co-ordinator for ICAI for certificate course on IFRS at Delhi. • He has worked as Vice President, Finance & Head, Centre of Excellence for Accounting and Management Assurance function at Jubilant Life Sciences. He has previously worked with Fortis Healthcare, Cyber Media and Religare Enterprises handling various finance function such as Treasury, Financial Reporting, Budgeting, MIS, Financial Planning, Taxation, Investor relations, etc. Currently, he is serving the profession in the field of auditing and accounting advisory.
CA. R. Sankaraiah CA. R. Sankaraiah is a Science Graduate and a Fellow Member of ICAI. Presently, he is the Executive Director – Finance, Jubilant Life Sciences Ltd and also the Group Finance Director, Jubilant Bhartia Group. He is a special invitee on NACAS and has been a member of IFRS Advisory Council of IASB for two, SEBI Committee on Disclosures and Accounting Standards (SCODA), CII National Council on Corporate Governance & Regulatory Affairs and CII National Committee on Financial Reporting. He is a member of the CFO working group formed by MCA to look nto the issues related to Convergence of IGAAP with IFRS and was also a member of the Coalition on International Taxation, in India. He has also been a Government Nominee on the Central Council of ICSI. He has extensive experience in the Development and Implementation of Business Strategies, Mergers & Acquisitions, Corporate Planning, Banking and Finance, Forex Management, Direct &
Indirect Taxation, Legal, Secretarial and other expertise which has been acquired over 30 years of his career. He has been conferred with several prestigious awards such as: • The India CFO Award 2007- Excellence in Finance (Large Corporate) in 2008 by IMA; • Best performing CFO in the Pharma Sector in 2009 by CNBC TV 18; • Best CFO (FMCG, Health and Retail Sector), in 2010 by Institute of Chartered Accountants of India; and • Best CFO in Pharma & Healthcare space in 2011 all Asia Executive Team Survey by Institutional investor. Mr Sankaraiah is a prominent speaker at various professional seminars related to IFRS, Taxation, Mergers & Acquisition, Financial Instruments, etc. He has co-authored several books with Dr Sanjeev Singhal on Accounting Standards, XBRL, Companies Act and several other financial issues. He has also been part of debates on various topics on leading TV channels.