Regulation 35 - Accounting treatment. - Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

35. Accounting treatment. Where the sweat equity shares are issued for a non-cash consideration, such non-cash consideration shall be treated in the following manner in the books of account of the company:- (a) where the non-cash consideration takes the form of a depreciable or amortizable asset, it shall be carried to the balance sheet of the company in accordance with the relevant accounting standards; or (b) where clause (a) is not applicable, it shall be expensed as provided in the relevant accounting standards.