MAT - Preparation of Statement Profit & Loss Account - [ Section 115JB(2) ]

Statement of profit and loss formality dictates MAT computation and requires identical accounting policies and depreciation methods.

Section 115JB(2) requires companies to prepare the statement of profit and loss account for MAT purposes in accordance with Schedule III to the Companies Act, 2013, except where a different form of financial statement is prescribed by the law governing certain classes of companies (such as insurers, banks, or electricity suppliers). The accounting policies, accounting standards and the methods and rates of depreciation used in that statement must be the same as those adopted in the financial statements laid before the company at its annual general meeting under section 129; where the company's financial year under the Companies Act differs, these accounting treatments must correspond to those adopted for the financial year or part thereof within the relevant previous year.