As per Companies Act 2013, Depreciation on Fixed Asset as per Schedule-II of the said act, will operate from 01/04/2014 vide MCA notification no S.O.902(E) dated 26/03/2014. As now there is more humour about the change in Accounting Standards i.e. to operate International Accounting Standard into Indian Accounting Standards, a company needs to change in various of its accounting policies and there fore the concept of Depreciation via “Life of Fixed Assets” has a supportive role to comply while preparing financials of the company.
Today it is very much important to calculate depreciation via useful life of the asset and hence it plays a crucial role for calculation of depreciation.
So, for the better understanding and clearity about the changes and working of Depreciation as per Schedule-II of Companies Act, 2013 is presented here: