Preparation of profit and loss account: companies must use prescribed accounting policies and standards when computing book profit. Companies shall prepare their profit and loss account for computing book profit in accordance with Parts II and III of Schedule VI to the Companies Act, 1956, and must use the same accounting policies, accounting standards and methods and rates of depreciation as adopted for the accounts laid at the annual general meeting. If the company's financial year under the Companies Act, 1956 differs from the financial year under this Code, those accounting policies, standards and depreciation methods and rates shall correspond to those adopted for the part of that differing financial year falling within the relevant financial year.
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Preparation of profit and loss account: companies must use prescribed accounting policies and standards when computing book profit.
Companies shall prepare their profit and loss account for computing book profit in accordance with Parts II and III of Schedule VI to the Companies Act, 1956, and must use the same accounting policies, accounting standards and methods and rates of depreciation as adopted for the accounts laid at the annual general meeting. If the company's financial year under the Companies Act, 1956 differs from the financial year under this Code, those accounting policies, standards and depreciation methods and rates shall correspond to those adopted for the part of that differing financial year falling within the relevant financial year.
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