Every company is required to follow useful life of assets as mentioned in Schedule II of the Companies Act, 2013. Is it possible to adopt different useful life of assets other than that mentioned in Schedule II of the Co

Vide Notification dated 29th August, 2014 issued by MCA, it was clarified that the useful life of an asset shall not ordinarily be different from what is specified in Part C of Schedule II and the residual value of an asset shall not be more than five percent of the original cost of the asset. It was further provided that where a company adopts a useful life different from what is specified in Part C or uses a residual value different from more than five percent, the financial statements shall disclose such difference and provide justification in this behalf duly supported by technical advice. This requirement is voluntary in respect of the financial year commencing on or after 1st April, 2014 and mandatory for financial statements in respect of financial years commencing on or after the 1st April, 2015. Therefore, it is possible to adopt different useful life of Assets than mentioned in Schedule II of the Companies Act, 2013.