M/s Zeta Limited is a listed company. It is engaged in the business of manufacturing electronic components. The company has an item having book value of ₹ 500 crores in its balance sheet as a part of its assets. As per a

Yes, the company may amortize the asset item in its books of account in 5 years but company should be having valid reasons for believing that such treatment will result into better representation of the true and fair view of the company's operations. Further company needs to comply the comply with the requirement of Para 2 -Schedule V which stipulates that where in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements, together with the management's explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.