Ind AS to Apply for ‘Amortisation of Intangible Assets’ under Schedule II: MCA

Ind AS to Apply for Amortisation of Intangible Assets: MCA Notifies Amendment in Schedule II to Companies Act 2013

MCA has amended Schedule II to Companies Act, 2013 to clarify that relevant Ind AS shall apply for computation of amortisation amount over the useful life of intangible assets. However, where a company is not required to comply with the Ind AS, it shall comply with relevant Accounting Standards under Companies (Accounting Standards) Rules.

 MCA Notification dt. 17 Nov. 2016 F. No. 17/60/2012-CL-V

G.S.R. 1075(E).—In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendments to amend Schedule II to the said Act, namely:-

1. In the Companies Act, 2013, in Schedule II, under Part ‘A’, in para 3, in sub-paragraph (ii), for the brackets, letters and words starting with “(ii) For intangible“ and ending with the words “force shall apply”, the following brackets, letters and words shall be substituted, namely:-

“(ii) For intangible assets, the relevant Indian Accounting Standards (Ind AS) shall apply. Where a company is not required to comply with the Indian Accounting Standards (Ind AS), it shall comply with relevant Accounting Standards under Companies (Accounting Standards) Rules, 2006.”

2. This notification shall be applicable for accounting period commencing on or after 1 April, 2016.

Note : Schedule II of the Companies Act, 2013 came into force with effect from 1st April, 2014 and was amended (with effect from 1st April, 2014) vide notification number G.S.R. 237(E), dated the 31st March, 2014 and G.S.R. 627(E), dated the 29th August, 2014.

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