Section 12(1) in The Unlisted Companies (Issue Of Sweat Equity Shares) Rules, 2003
(1)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.
