Following is the Exposure Draft of the Schedule XIV to the Companies Act, 1956, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, for comments. This Exposure Draft is in accordance with the IFRS converged Accounting Standards being formulated by the ICAI. The Board invites comments on any aspect of this Exposure Draft. Comments are most helpful if they indicate the specific item or group of items to which they relate, contain a clear rationale and, where applicable, provide a suggestion for alternative wording.
Comments should be submitted in writing to the Secretary, Accounting Standards Board, The Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi – 110 002, so as to be received not later than October 15, 2010. Comments can also be sent by e-mail at edcommentsasb@icai.org or asb@icai.org.
(See section 205 and 350 of the Companies Act, 1956)
(Indicative lives to calculate Depreciation)
PART ‘A’
1. This Schedule shall apply to companies to which Accounting Standards notified under Part I of the Companies (Accounting Standards) Rules _____- apply. As per Accounting Standard (AS) 10, Property, Plant and Equipment, notified under Part I of the Companies (Accounting Standards) Rules, _____, depreciation is the systematic allocation of depreciable amount of an asset over its useful life. Accordingly, this Schedule prescribes useful lives of various tangible assets in Part C which are indicative only. As per Accounting Standard (AS) 26, Intangible Assets, notified under Part I of the Companies (Accounting Standards) Rules, _____, an intangible asset with a finite useful life shall be amortised over its useful life. Accordingly, this Schedule prescribes indicative useful lives of intangible assets having definite useful life in its Part D. Provisions and notes contained in this schedule are subject to the provisions of the Companies Act, 1956 and Accounting Standards notified under Part I of the Companies
(Accounting Standards) Rules _____ as amended from time to time.
