On 10 April 2015, the Institute of Chartered Accountants of India (ICAI) has issued an application guide to address certain practical issues arising in the implementation of the Schedule II to the Companies Act, 2013 (2013 Act) relating to depreciation of the assets. The application guide also provides examples for a better understanding of the Schedule II to the 2013 Act. As opposed to the Schedule XIV of the Companies Act, 1956, the Schedule II to the 2013 Act brings along a number of changes in how Indian companies compute depreciation.
 
Recently, the ICAI has issued a revised version of the application guide which provides an updated guidance for computing depreciation for assets working in double/triple shift.
 
This issue of First Notes summarises the key aspects added by the application guide on computation of depreciation for assets working in double/triple shift. For the text of the application guide issued by the ICAI, please click here.