ICAI withdraws Application Guide on Provisions of Schedule II (Companies Act, 2013)

ICAI withdraws Application Guide on Provisions of Schedule II (Companies Act, 2013) post issuance of Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to the Companies Act, 2013

As per ICAI Announcement dt. 7 Oct. 2016, it has been decided to withdraw the “Application Guide on the Provisions of Schedule II to the Companies Act, 2013”, as the¬†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.

Since the authority of the ICAI’s Guidance Notes is more than the Application Guides, the Application Guide on the Provisions of Schedule II to the Companies Act, 2013 is no longer effective and stands withdrawn from the date the Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to the Companies Act, 2013, became applicable i.e.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.

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