Section 8(9) in Companies (Share Capital and Debentures) Rules, 2014
(9)Where sweat equity shares are issued for a non-cash consideration on the basis of a valuation report in respect thereof obtained from the registered valuer, 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 amortisable asset, it shall be carried to the balance sheet of the company in accordance with the accounting standards; or(b)where clause (a) is not applicable, it shall be expensed as provided in the accounting standards.
