Question

If a company uses useful life or residual value different than specified in Part C of Schedule II to the Companies Act, $2103$. Which of these is required to be disclosed in the financial statement?

• A. Financial affect thereof
• B. Justification
• C. Technical advice
• D. All the three

Answer 1

The correct option is D All the three

Ans. Option B: Justification

Companies act 2013 specified useful life to compute depreciation on assets in schedule II. As per Part A of the schedule II, the useful life of an asset shall not normally be different from the useful life and the residual value from that as indicated in Part C, provided that if a company uses a useful life or residual value which is different from the useful life or residual value indicated therein, it shall disclose the justification for the same.