S. Jaykishan

Chartered Accountants

Schedule II to the Companies Act 2013

Schedule II to the Companies Act 2013

By CA Aditi Chandak

With the introduction of the revamped Company Law, changes have been brought about in quite a few areas of interest. We’re focusing on the changes in depreciation in this article. Schedule XIV of the erstwhile Companies Act prescribed minimum SLM (straight line method) and WDV (written down value) rates for depreciation. The Companies could charge higher depreciation, if the useful life of an asset was shorter than that envisaged under Schedule XIV. The Companies Act, 2013 replaces Schedule XIV by Schedule II which requires systematic allocation of the depreciable amount of an asset over its useful life.

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