II.
III.
See accompanying notes to the financial statements.
General Instructions for Preparation of Statement of Profit and Loss
1. The provisions of this Part shall apply to the income and expenditure account referred to in sub-clause (ii) of clause (40) of section 2 in like manner as they apply to a statement of profit and loss.
2. (A) In respect of a company other than a finance company revenue from operations shall disclose separately in the notes revenue from—
(a) Sale of products;
(b) Sale of services;
(c) Other operating revenues;
(d) Excise duty.
(B) In respect of a finance company, revenue from operations shall include revenue from—
(a) Interest; and
(b) Other financial services.
Revenue under each of the above heads shall be disclosed separately by way of notes to accounts to the extent applicable.
3. Finance Costs
Finance costs shall be classified as:
(a) Interest expense;
(b) Other borrowing costs;
(c) Applicable net gain/loss on foreign currency transactions and translation.
4. Other income
Other income shall be classified as:
(a) Interest Income (in case of a company other than a finance company);
(b) Dividend Income;
(c) Net gain/loss on sale of investments;
(d) Other non-operating income (net of expenses directly attributable to such income).
5. Additional Information
A Company shall disclose by way of notes additional information regarding aggregate expenditure and income on the following items:—
(i) (a) Employee Benefits Expense [showing separately (i) salaries and wages, (ii) contribution to provident and other funds, (iii) expense on Employee Stock Option Scheme (ESOP) and Employee Stock Purchase Plan (ESPP), (iv) staff welfare expenses].
(b) Depreciation and amortisation expense;
(c) Any item of income or expenditure which exceeds one per cent. of the revenue from operations or `1,00,000, whichever is higher;
(d) Interest Income;
(e) Interest expense;
(f) Dividend income;
(g) Net gain/loss on sale of investments;
(h) Adjustments to the carrying amount of investments;
(i) Net gain or loss on foreign currency transaction and translation (other than considered as finance cost);
(j) Payments to the auditor as (a) auditor; (b) for taxation matters; (c) for company law matters; (d) for management services; (e) for other services; and (f) for reimbursement of expenses;
(k) In case of Companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities;
(l) Details of items of exceptional and extraordinary nature;
(m) Prior period items;
(ii) [5] [(a) In the case of manufacturing companies,—
(1) Raw materials under broad heads.
(2) goods purchased under broad heads.]
(b) In the case of trading companies, purchases in respect of goods traded in by the company under broad heads.
(c) In the case of companies rendering or supplying services, gross income derived from services rendered or supplied under broad heads.
(d) In the case of a company, which falls under more than one of the categories mentioned in (a), (b) and (c) above, it shall be sufficient compliance with the requirements herein if purchases, sales and consumption of raw material and the gross income from services rendered is shown under broad heads.
[6 ] [(e) In the case of other companies, gross income derived under broad heads.
(iii) In the case of all concerns having works-in-progress, works-in-progress under broad heads.]
(iv) (a) The aggregate, if material, of any amounts set aside or proposed to be set aside, to reserve, but not including provisions made to meet any specific liability, contingency or commitment known to exist at the date as to which the balance sheet is made up.
(b) The aggregate, if material, of any amounts withdrawn from such reserves.
(v) (a) The aggregate, if material, of the amounts set aside to provisions made for meeting specific liabilities, contingencies or commitments.
(b) The aggregate, if material, of the amounts withdrawn from such provisions, as no longer required.
(vi) Expenditure incurred on each of the following items, separately for each item:—
(a) Consumption of stores and spare parts;
(b) Power and fuel;
(c) Rent;
(d) Repairs to buildings;
(e) Repairs to machinery;
(f) Insurance;
(g) Rates and taxes, excluding, taxes on income;
(h) Miscellaneous expenses,
(vii) (a) Dividends from subsidiary companies.
(b) Provisions for losses of subsidiary companies.
[7] [(viii) The profit and loss account shall also contain by way of a note the following information, namely:—
(a) Value of imports calculated on C.I.F basis by the company during the financial year in respect of—
I. Raw materials;
II. Components and spare parts;
III. Capital goods;
(b) Expenditure in foreign currency during the financial year on account of royalty, know-how, professional and consultation fees, interest, and other matters;
(c) Total value if all imported raw materials, spare parts and components consumed during the financial year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption;]
(d) The amount remitted during the year in foreign currencies on account of dividends with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related;
[8] [(e) Earnings in foreign exchange classified under the following heads, namely:—
I. Export of goods calculated on F.O.B. basis;
II. Royalty, know-how, professional and consultation fees;
III. Interest and dividend;
IV. Other income, indicating the nature thereof.]
Note:—Broad heads shall be decided taking into account the concept of materiality and presentation of true and fair view of financial statements.
General Instructions for the Preparation of Consolidated Financial Statements
1. Where a company is required to prepare Consolidated Financial Statements, i.e., consolidated balance sheet and consolidated statement of profit and loss, the company shall mutatis mutandis follow the requirements of this Schedule as applicable to a company in the preparation of balance sheet and statement of profit and loss. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Accounting Standards including the following:
(i) Profit or loss attributable to “minority interest” and to owners of the parent in the statement of profit and loss shall be presented as allocation for the period.
(ii) “Minority interests” in the balance sheet within equity shall be presented separately from the equity of the owners of the parent.
2. In Consolidated Financial Statements, the following shall be disclosed by way of additional information:
Name of the entity in the | Net Assets, i.e., total assets minus total liabilities | Share in profit or loss | ||
As % of consolidated net assets | Amount | As % of consolidated profit or loss | Amount | |
1 | 2 | 3 | 4 | 5 |
Parent Subsidiaries Indian | ||||
1. | ||||
2. | ||||
3. | ||||
. | ||||
. | ||||
Foreign | ||||
1. | ||||
2. | ||||
3. | ||||
. | ||||
. | ||||
Minority Interests in all subsidiaries | ||||
Associates (Investment as per the equity method) Indian | ||||
1. | ||||
2. | ||||
3. | ||||
. | ||||
. | ||||
Foreign | ||||
1. | ||||
2. | ||||
3. | ||||
. | ||||
. | ||||
Joint Ventures (as per proportionateconsolidation/ investment as per the equity method) Indian | ||||
1. | ||||
2. | ||||
3. | ||||
. | ||||
Foreign | ||||
1. | ||||
2. | ||||
3. | ||||
. | ||||
. | ||||
Total |
3. All subsidiaries, associates and joint ventures (whether Indian or foreign) will be covered under consolidated financial statements.
4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating.
1. Schedule III of the 2013 Act deals with instructions for prepation of Balance Sheet and Profit and Loss of account of a company under section 129 of the 2013 act. Schedule III also provides for the instructions for prepation of Consolidated Financial Statements to be filed by holding companies in corporating the financial statements of its subsidiaries.
2. Schedule III of the 2013 Act corresponds to Schedule VI of the 1956 Act. See also Schedule VI of the 1956 Act.
3. See also section 129 of the 2013 Act for commentary on Schedule III of the 2013 Act. It will also be relevant to refer to Rule VI of the Companies (Accounts) Rules, 2014.
[9] [ Division II
Financial Statements for a company whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015.
GENERAL INSTRUCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS OF A COMPANY REQUIRED TO COMPLY WITH Ind AS
1. Every company to which India Accounting Standards apply, shall prepare its financial statements in accordance with this Schedule or with such modification as may be required under certain circumstances
2. Where compliance with the requirements of the Act including Indian Accounting Standards (except the opinion of presenting assets and liabilities in the order of liquidity as provided by the relevant Ind AS as applicable to the companies require any change in treatment or disclosure including addition, amendment, substitution or deletion in the head or sub-head or any changes, inter se , in the financial statements or statements forming part thereof, the same shall be made and the requirements under this Schedule shall stand modified accordingly.
3. The disclosure requirements specified in this Schedule are in addition to and not in substitution of the disclosure requirements specified in the Indian Accounting Standards. Additional disclosures specified in the Indian Accounting Standards shall be made in the notes or by way of additional statement or statements unless required to be disclosed on the face of the Financial Statements. Similarly, all other disclosures as required by the Companies Act, 2013 shall be made in the notes to accounts in addition to the requirements set out in this Schedule.
4. ( i ) Notes shall contain information in addition to that presented in the Financial Statements and shall provide where required-
( a ) narrative descriptions or disaggregations of items recognised in those statements; and
( b ) information about items that do not qualify for recognition in those statements.
( ii ) Each item on the face of the Balance Sheet, Statement of Changes in Equity and Statement of Profit and Loss shall be cross-referenced to any related information in the notes. In preparing the Financial Statements including the notes, a balance shall be maintained between providing excessive detail that may not assist users of Financial Statements and not providing important information as a result of too much aggregation.
5. Depending upon the turnover of the company, the figures appearing in the Financial Statements shall be rounded off as below:—
|
|
( ) less than one hundred crore rupees | To the nearest hundreds, thousands, lakhs or millions, or decimals thereof. |
( ) one hundred crore rupees or more | To the nearest, lakhs, millions or crores, or decimals thereof. |
Once a unit of measurement is used, it should be used uniformly in the Financial Statements.
6. Financial Statements shall contain the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in the Financial Statements including notes except in the case of first Financial Statements laid before the company after incorporation.
7. Financial Statements shall disclose all ‘material’ items, i.e, the items if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size or nature of the item or a combination of both, to be judged in the particular circumstances.
8. For the purpose of this Schedule, the terms used herein shall have the same meanings assigned to them in Indian Accounting Standards.
9. Where any Act or Regulation requires specific disclosures to be made in the stand alone financial statements of a company, the said disclosures shall be made in addition to those required under this Schedule.
Note: —This Schedule sets out the minimum requirements for disclosure on the face of the Financial Statements, i.e, Balance Sheet, Statement of Changes in Equity for the period, the Statement of profit and Loss for the period (The term ‘Statement of Profit and Loss’ has the same meaning as ‘profit and Loss Account’) and Notes. Cash flow statement shall be prepared, where applicable, in accordance with requirements of the relevant Indian Accounting Standard.
Line items, sub-line items and sub-totals shall be presented as an addition or substitution on the face of the Financial Statements when such presentation is relevant to an understanding of the company’s financial position or performance or to cater to industry or sector-specific disclosure requirements or when required for compliance with the amendments to the Companies Act, 2013 or under the Indian Accounting Standards.
Balance Sheet as at ………………………
1 | 2 | 3 | 4 | |
(1)
(2) |
(a) Property, Plant and Equipment (b) Capital work-in-progress (c) investment Property (d) Goodwill (e) Other Intangible assets (f) Intangible assets under development (g) Biological Assets other than bearer plants (h) Financial Assets (i) Investments (ii) Trade receivables (iii) Loans (iv) Others (to be specified)
(i) Deferred tax assets (net) (j) Other non-current assets
(a) Inventories (b) Financial Assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (vi) Others (to be specified)
(c) Current Tax Assets (Net) (d) Other current assets
| |||
(1)
(2) |
(a) Equity Share capital (b) Other Equity
(a) Financial Liabilities (i) Borrowings (ii) Trade payables (iii) Other financial liabilities (other than those specified in item (b), to be specified)
(b) Provisions (c) Deferred tax liabilities (Net) (d) Other non-current liabilities
(a) Financial Liabilities (i) Borrowings (ii) Trade payables (iii) Other financial liabilities (other than those specified in item (c) (b) Other current liabilities (c) Provisions (d) Current Tax Liabilities (Net) | |||
Total Equity and Liabilities |
See accompanying notes to the Financial Statements.
STATEMENT OF CHANGES IN EQUITY
Name of the Company…………………………..
Statement of Changes in equity for the period ended…………………………
(Rupees in…………….)
A. Equity Share Capital
Balance at the beginning of the reporting period | Changes in equity share capital during the year | Balance at the end of the reporting period |
B. Other Equity
Capital Reserve | Securities Premium Reserve | Other Reserves (specify nature) | Retained Earnings | Debt instrument through Other Comprehensive Income | Equity Instruments through Other Cash Flow Hedges | Revaluation Surplus | Exchange differences on translating the financial statements of a foreign operation | Other items of other Comprehensive Income(Specify nature) | |||||
Balance at the beginning of the reporting period | |||||||||||||
Changes in accounting policy or prior period errors | |||||||||||||
Restated balance at the beginning of the reporting period | |||||||||||||
Total Comprehensive | |||||||||||||
Income for the year | |||||||||||||
Dividends | |||||||||||||
Transfer to retained earnings | |||||||||||||
Any other change (to be specified) | |||||||||||||
Balance at the end of the reporting period |
Note: Remeasurement of defined benefit plans and fair value changes to own credit risk of financial liabilities designated at fair value through profit or loss shall be recognised as a part of retained earnings with separate disclosure of such items alongwith the relevant amounts in the Notes.
GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET
1. An entity shall classify an asset as current when-
(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;
(b) it holds the asset primarily for the purpose of trading;
(c) it expects to realise the asset within twelve months after the reporting period; or
(d) the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting
An entity shall classify all other assets as non-current.
2. The operating cycle of an entity is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. When the entity’s normal operating cycle is not clearly identifiable, it is assumed to be twelve months.
3. An entity shall classify a liability as current when-
(a) it expects to settle the liability in its normal operating cycle;
(b) it holds the liability primarily for the purpose of trading;
(c) the liability is due to be settled within twelve months after the reporting period; or
(d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
An entity shall classify all other liabilities as non-current.
4. A receivable shall be classified as a ‘trade receivable’ if it is in respect of the amount due on account of goods sold or services rendered in the normal course of business.
5. A payable shall be classified as a ‘trade payable’ if it is in respect of the amount due on account of goods purchased or services received in the normal course of business.
6. A company shall disclose the following in the Notes:
I. Property, Plant and Equipment :
(i) Classification shall be given as:
(b) Buildings
(c) Plant and Equipment
(d) Furniture and Fixtures
(e) Vehicles
(f) Office equipment
(g) Bearer Plants
(h) Others (specify nature)
(ii) Assets under lease shall be separately specified under each class of assets.
(iii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately.
II. Investment Property:
A reconciliation of the gross and net carrying amounts of each class of property at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related depreciation and impairment losses or reversals shall be disclosed separately.
III. Goodwill:
A reconciliation of the gross and net carrying amount of goodwill at the beginning and end of the reporting period showing additions, impairments, disposals and other adjustments.
IV. Other Intangible assets:
(i) Classification shall be given as:
(a) Brands or trademarks
(b) Computer software
(c) Mastheads and publishing titles
(d) Mining rights
(e) Copyrights, patents, other intellectual property rights, services and operating rights
(f) Recipes, formulae, models, designs and prototypes
(g) Licenses and franchises
(ii) A reconciliation of the gross and net carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments and the related amortization and impairment losses or reversals shall be disclosed separately.
V. Biological Assets other than bearer plants:
A reconciliation of the carrying amounts of each class of assets at the beginning and end of the reporting period showing additions, disposals, acquisitions through business combinations and other adjustments shall be disclosed separately.
VI. Investments:
(i) Investments shall be classified as:
(a) Investments in Equity Instruments;
(b) Investments in Preference Shares;
(c) Investments in Government or trust securities;
(d) Investments in debentures or bonds;
(e) Investments in Mutual Funds;
(f) Investments in partnership firms; or
(g) Other investments (specify nature).
Under each classification, details shall be given of names of the bodies corporate that are-
(i) subsidiaries,
(ii) associates,
(iii) joint ventures, or
(iv) structured entities,
in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid). Investments in partnership firms alongwith names of the firms, their partners, total capital and the shares of each partner shall be disclosed separately.
(ii) The following shall also be disclosed:
(a) Aggregate amount of quoted investments and market value thereof;
(b) Aggregate amount of unquoted investments; and
(c) Aggregate amount of impairment in value of investments.
VII. Trade Receivables:
(i) Trade receivables shall be sub-classified as:
(a) Secured, considered good;
(b) Unsecured considered good; and
(c) Doubtful.
(ii) Allowance for bad and doubtful debts shall be disclosed under the relevant heads separately.
(iii) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.
VIII. Loans:
(i) Loans shall be classified as-
(a) Security Deposits;
(b) Loans to related parties (giving details thereof); and
(c) Other loans (specify nature).
(ii) The above shall also be separately sub-classified as-
(b) Unsecured, considered good; and
(iii) Allowance for bad and doubtful loans shall be disclosed under the relevant heads separately.
(iv) Loans due by directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.
IX. Bank deposits with more than 12 months maturity shall be disclosed under ‘Other financial assets’;
X. Other non-current assets: Other non-current assets shall be classified as-
(i) Capital Advances; and
(ii) Advances other than capital advances;
(1) Advances other than capital advances shall be classified as:
(b) Advances to related parties (giving details thereof); and
(c) Other advances (specify nature).
(2) Advances to directors or other officers of the company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member should be separately stated. In case advances are of the nature of a financial asset as per relevant Ind AS, these are to be disclosed under ‘other financial assets’ separately.
(iii) Others (specify nature).
I. Inventories:
(i) Inventories shall be classified as-
(a) Raw materials;
(b) Work-in-progress;
(c) Finished goods;
(d) Stock-in-trade (in respect of goods acquired for trading);
(e) Stores and spares;
(f) Loose tools; and
(g) Others (specify nature).
(ii) Goods-in-transit shall be disclosed under the relevant sub-head of inventories.
(iii) Mode of valuation shall be stated.
II. Investment
(i) Investments shall be classified as-
(b) Investment in Preference Shares;
(c) Investments in government or trust securities;
(f) Investments in partnership firms; and
(a) subsidiaries,
(b) associates,
(c) joint ventures, or
(d) structured entities,
in whom investments have been made and the nature and extent of the investment so made in each such body corporate (showing separately investments which are partly-paid).
(ii) The following shall also be disclosed-
(b) Aggregate amount of unquoted investments;
III. Trade Receivables:
(iii) Debts due by directors or other officers of the company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.
IV. Cash and cash equivalents: Cash and cash equivalents shall be classified as-
a. Balances with Banks (of the nature of cash and cash equivalents);
b. Cheques, drafts on hand;
c. Cash on hand; and
d. Others (specify nature).
(i) Loans shall be classified as:
(a) Security deposits;
(c) Others (specify nature).
(ii) The above shall also be sub-classified as-
(c) Doubtful
(iii) Allowance for bad and doubtful loans shall be disclosed under the relevant heads separately.
(iv) Loans due by directors or other officers of the company or any of them either severally or jointly with any other person or amounts due by firms or private companies respectively in which any director is a partner or a director or a member shall be separately stated.
VI. Other current assets (specify nature): This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset categories. Other current assets shall be classified as-
(i) Advances other than capital advances
(b) Advances to related parties (giving details thereof);
(2) Advances to directors or other officers of the company or any of them either severally or jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or a director or a member should be separately stated.
(ii) Others (specify nature)
C. Cash and Bank balances: The following disclosures with regard to cash and bank balances shall be made:
(a) Earmarked balances with banks (for example, for unpaid dividend) shall be separately stated.
(b) Balances with banks to the extent held as margin money or security against the borrowings, guarantees, other commitments shall be disclosed
(c) Repatriation restrictions, if any, in respect of cash and bank balances shall be separately stated.
I. Equity Share Capital: For each class of equity share capital:
(a) the number and amount of shares authorised;
(b) the number of shares issued, subscribed and fully paid, and subscribed but not fully paid;
(c) par value per share;
(d) a reconciliation of the number of shares outstanding at the beginning and at the end of the period;
(e) the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital;
(f) shares in respect of each class in the company held by its holding company or its ultimate holding company including shares held by subsidiaries or associates of the holding company or the ultimate holding company in aggregate;
(g) shares in the company held by each shareholder holding more than five per cent. shares specifying the number of shares held;
(h) shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment, including the terms and amounts;
(i) for the period of five years immediately preceding the date at which the Balance Sheet is prepared-
– aggregate number and class of shares allotted as fully paid up pursuant to contract without payment being received in cash;
– aggregate number and class of shares allotted as fully paid up by way of bonus shares; and
– aggregate number and class of shares bought back;
(j) terms of any securities convertible into equity shares issued along with the earliest date of conversion in descending order starting from the farthest such date;
(k) calls unpaid (showing aggregate value of calls unpaid by directors and officers);
(l) forfeited shares (amount originally paid up).
II. Other Equity:
(i) ‘Other Reserves’ shall be classified in the notes as-
(a) Capital Redemption Reserve;
(b) Debenture Redemption Reserve;
(c) Share Options Outstanding Account; and
(d) Others— (specify the nature and purpose of each reserve and the amount in respect thereof);
(Additions and deductions since last balance sheet to be shown under each of the specified heads)
(ii) Retained Earnings represents surplus i.e. balance of the relevant column in the Statement of Changes in Equity;
(iii) A reserve specifically represented by earmarked investments shall disclose the fact that it is so represented;
(iv) Debit balance of Statement of Profit and Loss shall be shown as a negative figure under the head ‘retained earnings’. Similarly, the balance of ‘Other Equity’, after adjusting negative balance of retained earnings, if any, shall be shown under the head ‘Other Equity’ even if the resulting figure is in the negative; and
(v) Under the sub-head ‘Other Equity’, disclosure shall be made for the nature and amount of each item.
I. Borrowings:
(i) borrowings shall be classified as-
(a) Bonds or debentures
(b) Term loans
(I) from banks
(II) from other parties
(c) Deferred payment liabilities
(d) Deposits
(e) Loans from related parties
(f) Long term maturities of finance lease obligations
(g) Liability component of compound financial instruments
(h) Other loans (specify nature);
(ii) borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case.
(iii) where loans have been guaranteed by directors or others, the aggregate amount of such loans under each head shall be disclosed;
(iv) bonds or debentures (along with the rate of interest, and particulars of redemption or conversion, as the case may be) shall be stated in descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by installments, the date of maturity for this purpose must be reckoned as the date on which the first installment becomes due;
(v) particulars of any redeemed bonds or debentures which the company has power to reissue shall be disclosed;
(vi) terms of repayment of term loans and other loans shall be stated; and
(vii) period and amount of default as on the balance sheet date in repayment of borrowings and interest shall be specified separately in each case.
III. Provisions: The amounts shall be classified as-
(a) Provision for employee benefits; and
(b) Others (specify nature),
IV. Other non-current liabilities:
(a) Advances; and
(b) Others (specify nature).
I. Borrowings :
(i) Borrowings shall be classified as-
(a) Loans repayable on demand
(b) Loans from related parties
(c) Deposits
(d) Other loans (specify nature);
(ii) borrowings shall further be sub-classified as secured and unsecured. Nature of security shall be specified separately in each case;
(iv) period and amount of default as on the balance sheet date in repayment of borrowings and interest, shall be specified separately in each case.
II. Other Financial Liabilities: Other Financial liabilities shall be classified as-
(a) Current maturities of long-term debt;
(b) Current maturities of finance lease obligations;
(c) Interest accrued;
(d) Unpaid dividends;
(e) Application money received for allotment of securities to the extent refundable and interest accrued thereon;
(f) Unpaid matured deposits and interest accrued thereon;
(g) Unpaid matured debentures and interest accrued thereon; and
(h) Others (specify nature).
‘Long term debt’ is a borrowing having a period of more than twelve months at the time of origination
III. Other current liabilities:
The amounts shall be classified as-
(a) revenue received in advance;
(b) other advances (specify nature); and
(c) others (specify nature);
IV. Provisions: The amounts shall be classified as-
(i) provision for employee benefits; and
(ii) others (specify nature).
G. The presentation of liabilities associated with group of assets classified as held for sale and non-current assets classified as held for sale shall be in accordance with the relevant Indian Accounting Standards (Ind ASs).
(to the extent not provided for)
(i) Contingent Liabilities shall be classified as-
(a) claims against the company not acknowledged as debt;
(b) guarantees excluding financial guarantees; and
(c) other money for which the company is contingently liable.
(ii) Commitments shall be classified as-
(a) estimated amount of contracts remaining to be executed on capital account and not provided for;
(b) uncalled liability on shares and other investments partly paid; and
(c) other commitments (specify nature).
I. The amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share shall be disclosed separately. Arrears of fixed cumulative dividends on irredeemable preference shares shall also be disclosed separately.
J. Where in respect of an issue of securities made for a specific purpose the whole or part of amount has not been used for the specific purpose at the Balance Sheet date, there shall be indicated by way of note how such unutilised amounts have been used or invested.
7. When a company applies an accounting policy retrospectively or makes a restatement of items in the financial statements or when it reclassifies items in its financial statements, the company shall attach to the Balance Sheet, a “Balance Sheet” as at the beginning of the earliest comparative period presented.
8. Share application money pending allotment shall be classified into equity or liability in accordance with relevant Indian Accounting Standards. Share application money to the extent not refundable shall be shown under the head Equity and share application money to the extent refundable shall be separately shown under ‘Other financial liabilities’.
9. Preference shares including premium received on issue, shall be classified and presented as ‘Equity’ or ‘Liability’ in accordance with the requirements of the relevant Indian Accounting Standards. Accordingly, the disclosure and presentation requirements in this regard applicable to the relevant class of equity or liability shall be applicable mutatis mutandis to the preference shares. For instance, redeemable preference shares shall be classified and presented under ‘non-current liabilities’ as ‘borrowings’ and the disclosure requirements in this regard applicable to such borrowings shall be applicable mutatis mutandis to redeemable preference shares.
10. Compound financial instruments such as convertible debentures, where split into equity and liability components, as per the requirements of the relevant Indian Accounting Standards, shall be classified and presented under the relevant heads in ‘Equity’ and ‘Liabilities’
11. Regulatory Deferral Account Balances shall be presented in the Balance Sheet in accordance with the relevant Indian Accounting Standards.
[ K. Every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the period from 8/11/2016 to 30/12/2016 as provided in the Table below:—
Explanation : For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.”] [10]
PART II – STATEMENT OF PROFIT AND LOSS
I | Revenue from operations | |||||
II | Other income | |||||
III | Total Revenue (I + II) | |||||
IV | EXPENSES Cost of materials consumed | |||||
Purchases of Stock-in-Trade | ||||||
Changes in inventories of finished goods, Stock-in-Trade and work-in-progress | ||||||
Employee benefits expense | ||||||
Finance costs | ||||||
Depreciation and amortisation expense | ||||||
Other expenses | ||||||
Total expenses (IV) | ||||||
V | Profit/(loss) before exceptional items and tax (I-IV) | |||||
VI | Exceptional Items | |||||
VII | Profit (loss) before tax(V-VI) | |||||
VIII | Tax expenses: (1) Current tax (2) Deferred tax | |||||
IX | Profit (Loss) for the period from continuing operations (VII-VIII) | |||||
X | Profit/(loss) from discontinuing operations | |||||
XI | Tax expense of discontinuing operations | |||||
XII | Profit/(loss) from Discontinuing operations (after tax) (X-XI) | |||||
XIII | Profit/(loss) for the perriod (IX+XII) | |||||
XIV | Other Comprehensive Income A(i) Items that will not be reclassified to profit or loss ii) Income tax relating to items that will not be reclassified to profit or loss B(i) Items that will be reclassified to profit or loss (ii) Income tax relating to items that will be reclassified to profit or loss | |||||
XV | Total Comprehensive Income for the period(XIII+XIV)(Comprising Profit (Loss) and other Comprehensive Income for thr period) | |||||
XVI | Earnings per equity share(for continuing operation): (1) Basic (2) Diluted | |||||
XVII | Earnings per equity share(for discontinued operation): (1) Basic (2) Diluted | |||||
XVIII | Earnings per equity share(for discontinued & continuing operation): (1)Basic (2) Diluted |
See accompanying notes to the financial statements
GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS
1. The provisions of this Part shall apply to the income and expenditure account, in like manner as they apply to a Statement of Profit and Loss.
2. The Statement of Profit and Loss shall include:
(1) Profit or loss for the period;
(2) Other Comprehensive Income for the period.
The sum of (1) and (2) above is ‘Total Comprehensive Income’.
3. Revenue from operations shall disclose separately in the notes
(a) sale of products (including Excise Duty);
(b) sale of services; and
(c) other operating revenues.
4. Finance Costs: Finance costs shall be classified as-
(a) interest;
(b) dividend on redeemable preference shares;
(c) exchange differences regarded as an adjustment to borrowing costs; and
(d) other borrowing costs (specify nature).
5. Other income: Other income shall be classified as-
(a) interest Income;
(b) dividend Income; and
(c) other non-operating income (net of expenses directly attributable to such income).
6. Other Comprehensive Income shall be classified into-
(A) Items that will not be reclassified to profit or loss
(i) Changes in revaluation surplus;
(ii) Remeasurements of the defined benefit plans;
(iii) Equity Instruments through Other Comprehensive Income;
(iv) Fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss;
(v) Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be classified into profit or loss; and
(vi) Others (specify nature).
(B) Items that will be reclassified to profit or loss;
(i) Exchange differences in translating the financial statements of a foreign operation;
(ii) Debt Instruments through Other Comprehensive Income;
(iii) The effective portion of gains and loss on hedging instruments in a cash flow hedge;
(iv) Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent to be classified into profit or loss; and
(v) Others (specify nature).
7. Additional Information: A Company shall disclose by way of notes, additional information regarding aggregate expenditure and income on the following items:
(a) employee Benefits expense [showing separately (i) salaries and wages, (ii) contribution to provident and other funds, (iii) share based payments to employees, (iv) staff welfare expenses].
(b) depreciation and amortisation expense;
(c) any item of income or expenditure which exceeds one per cent of the revenue from operations or Rs.10,00,000, whichever is higher, in addition to the consideration of ‘materiality’ as specified in clause 7 of the General Instructions for Preparation of Financial Statements of a Company;
(d) interest Income;
(e) interest Expense;
(f) dividend income;
(g) net gain or loss on sale of investments;
(h) net gain or loss on foreign currency transaction and translation (other than considered as finance cost);
(i) payments to the auditor as (a) auditor, (b) for taxation matters, (c) for company law matters, (d) for other services, (e) for reimbursement of expenses;
(j) in case of companies covered under section 135, amount of expenditure incurred on corporate social responsibility activities; and
(k) details of items of exceptional nature;
8. Changes in Regulatory Deferral Account Balances shall be presented in the Statement of Profit and Loss in accordance with the relevant Indian Accounting Standards.
PART III- GENERAL INSTRUCTIONS FOR THE PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
1. Where a company is required to prepare Consolidated Financial Statements, i.e., consolidated balance sheet, consolidated statement of changes in equity and consolidated statement of profit and loss, the company shall mutates mutandis follow the requirements of this Schedule as applicable to a company in the preparation of balance sheet, statement of changes in equity and statement of profit and loss. In addition, the consolidated financial statements shall disclose the information as per the requirements specified in the applicable Indian Accounting Standards notified under the Companies (Indian Accounting Standards) Rules 2015, including the following, namely:-
(i) Profit or loss attributable to ‘non-controlling interest’ and to ‘owners of the parent’ in the statement of profit and loss shall be presented as allocation for the period. Further, ‘total comprehensive income’ for the period attributable to ‘non-controlling interest’ and to ‘owners of the parent’ shall be presented in the statement of profit and loss as allocation for the period. The aforesaid disclosures for ‘total comprehensive income’ shall also be made in the statement of changes in equity. In addition to the disclosure requirements in the Indian Accounting Standards, the aforesaid disclosures shall also be made in respect of ‘other comprehensive income’.
(ii) ‘Non-controlling interests’ in the Balance Sheet and in the Statement of Changes in Equity, within equity, shall be presented separately from the equity of the ‘owners of the parent’,
(iii) Investments accounted for using the equity method.
As % of consolidated net assets | Amount | As % of consolidated profit or loss | Amount | As % of consolidated other comprehensive income | Amount | As % of consolidated income | Amount | |
Parent Subsidiaries Indian Foreign Non-Controlling interests in all subsidiaries Associates (Investment as per the equity method) Indian Foreign Joint Ventures (investment as per the equity method) Indian Foreign | ||||||||
Total |
4. An entity shall disclose the list of subsidiaries or associates or joint ventures which have not been consolidated in the consolidated financial statements along with the reasons of not consolidating.]
RELEVANT CIRCULARS
Commencement of provisions of the Companies Act, 2013 with regard to maintenance of books of accounts and preparations/adoption/filing of financial statements, auditors report. Board’s report and attachments to such statements and reports- Applicability with regard to relevant financial year
General Circular 08/2014 dated 04.04.2014
A number of provisions of the Companies Act, 2013 including those relating to maintenance of books of account, preparation, adoption & filing of financial statements (and documents required to be attached thereto), Auditors reports and the Board of Directors report (Board’s report) have been brought into force with effect from 1st April, 2014. Provisions of Schedule II (Useful lives to compute depreciation) and Schedule III (Format of financial statements) have also been brought into force from that date. The relevant Rules pertaining to these provisions have also been notified, placed on the website of the Ministry and have come into force from the same date.
The Ministry has received requests for clarification with regard to the relevant financial year with effect from which such provisions of the new Act relating to maintenance of books of account, preparation, adoption and filing of financial statements (and attachments thereto), auditors report and Board’s report will be applicable.
Although the position in this behalf is quite clear, to make things absolutely clear it is hereby notified that the financial statements (and documents required to be attached thereto), auditors report and Board report in respect of financial years that commenced earlier than 1st April, 2014 shall be governed by the relevant provisions/ Schedules/ rules of the Companies Act, 1956 and that in respect of financial years commencing on or after 1st April, 2014, the provisions of the new Act shall apply.
Clarification Accounting Standards (AS) 10 — Capitalization of Cost – regarding
General Circular No. 39/2014, dated 14-10-2014.
Government has received representations from stakeholders seeking clarifications on the manner of presentation of notes in Consolidated Financial Statement (CFS) to be prepared under Schedule III to the Companies Act, 2013 (Act). These representations have been examined in consultation with the Institute of Chartered Accountants of India (ICAI) and it is clarified that Schedule III to the Act read with the applicable Accounting Standards does not envisage that a company while preparing its CFS merely repeats the disclosures made by it under stand-alone accounts being consolidated. In the CFS, the company would need to give all disclosures relevant for CFS only. [ No. 4/2/2014-CL-1 ].
Clarification on matters relating to Consolidated Financial Statement
General Circular No. 39/2014, dated 14-10-2014
Government has received representations from stakeholders seeking clarifications on the manner of presentation of notes in Consolidated Financial Statement (CFS) to be prepared under Schedule III to the Companies Act, 2013 (Act). These representations have been examined in the consultation with the Institute of Chartered Accountants of India (ICAI) and it is clarified that Schedule III to the Act read with applicable Accounting Standards does not evisage that a company while preparing its CFS merely repeats the disclosure made by it under stand-alone accounts being consolidated. In the CFS, the company would need to give all disclosure relevant for CFS only. [No. 4/2/2014-CL-1].
[ 1] Corresponds to Schedule VI of the Companies Act, 1956.
[2] Substituted for the heading “General instructions for preparation of Balance Sheet and Statements of Profit and Loss of a Company” by Notification F. No. 17/62/2015-CL-V dated 06 th April 2016
[3] Substituted for “Trade Payables” vide Notification No. G.S.R. 679(E) dated 4-9-2015.
[4] Inserted vide Notification No. G.S.R. 679(E) dated 4-9-2015.
[5] Not applicable to government companies producing Defence Equipment including the Space Research subject to fulfillment of certain conditions. Vide File no. 1/9/2013 CL-V-Part dated 4-9-2015.
[6] Not applicable to government companies producing Defence Equipment including the Space Research subject to fulfilment of certain conditions. Vide File no. 1/9/2013 CL-V-Part dated 4-9-2015.
[7] Not applicable to government companies producing Defence Equipment including the Space Research subject to fulfilment of certain conditions. Vide File no. 1/9/2013 CL-V-Part dated 4-9-2015.
[8] Not applicable to government companies producing Defence Equipment including the Space Research subject to fulfilment of certain conditions. Vide File no. 1/9/2013 CL-V-Part dated 4-9-2015.
[9] Inserted by Notification F. No. 17/62/2015-CL-V dated 06 th April 2016
[10] Inserted vide notification no. G.S.R. 308(E) dated 30th March 2017
[11] Inserted vide notification no. G.S.R. 308(E) dated 30th March 2017.
[12] Substituted for the words “shall” vide Notification No. F.No. 17/62/2015-CL-V Vol-I dated 11 th October, 2018.
[13] Substituted for the words “Fixed assets” vide Notification No. F.No. 17/62/2015-CL-V Vol-I dated 11 th October, 2018.
[14] Omitted word “Reserve” vide Notification No. F.No. 17/62/2015-CL-V Vol-I dated 11 th October, 2018.
[15] Substituted for the words “Fixed assets” vide Notification No. F.No. 17/62/2015-CL-V Vol-I dated 11 th October, 2018.
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Corporate Law Referencer
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80A Right to require financial statements to be prepared
(1) If a company has not prepared financial statements for a continuous period of 18 months or more, any member or director of the company may at any time demand that financial statements be prepared for the period since the end of the financial period to which the preceding financial statements relate or, if none, since the incorporation of the company and made up to such date as is specified in the demand, not being later than the date of demand.
(2) A demand under subsection (1) shall be made in writing and deposited at the registered office of the company.
(3) The financial statements must be prepared by the company within 6 months of the date of deposit of the demand.
(4) A company that contravenes subsection (1) commits an offence.
[S 80A inserted by Companies (Amendment) Act 2009 s 29.]
80B Additional provisions concerning presentation of financial statements (1) Whenever financial statements are prepared-
(a) the statement referred to in section 80(3)(a) must give a true and fair view of the state of affairs of the company at the end of the financial period to which it relates; and
(b) the statement referred to in section 80(3)(b) must give a true and fair view of the receipts, payments and other financial transactions undertaken by the company for the financial period to which it relates.
(2) Subsection (1) is subject to subsections (3) and (4).
(3) Unless regulations made under subsection (4) require compliance with standards or the adoption of practices which are not consistent with generally accepted accounting principles or practice, in determining how amounts are presented within items within the statements referred to in section 80(3)(a) and (b) the directors of a company must have regard to the substance of the reported transaction or arrangement in accordance with generally accepted accounting principles or practice.
(4) The Financial Supervision Commission may make regulations which, in such circumstances and for such purposes as are prescribed, require compliance with standards or the adoption of practices recommended by a body specified in the regulations, and which may in particular require compliance with standards or the adoption of practices recommended by that body from time to time (that is, after as well as before the making of the regulations).
(5) Regulations under subsection (4) shall not come into operation unless they are approved by Tynwald.
(6) In this section, ‘generally accepted accounting principles or practice’ means accounting standards and practices recommended by-
(a) the International Accounting Standards Board (International Financial Reporting Standards);
(b) the Accounting Standards Board (United Kingdom Accounting Standards) (UK GAAP); or
(c) the Financial Accounting Standards Board, the Government Accounting Standards Board or the Federal Accounting Standards Advisory Board (US GAAP).
[S 80B inserted by Companies (Amendment) Act 2009 s 29.] 80C Auditor to be qualified (1) This section applies where an auditor is to be appointed by a company (whether or not under compulsion of law or other obligation).
(2) Without prejudice to the generality of subsection (1), a company must appoint an auditor where the company’s securities are listed or admitted to trade on a securities market or exchange.
(3) Where this section applies, the company must appoint an auditor who is qualified for appointment under this section to audit its financial statements.
(4) Subject to subsection (6), a person or body shall not be qualified for appointment as auditor of a company (within the meaning of this Act) unless that person or body is qualified for appointment as auditor under sections 14 to 14H of the Companies Act 1982 of a company (within the meaning of that Act).
(5) Without prejudice to the generality of subsection (4), an application may be made under section 14E of the Companies Act 1982 for authorisation under that section to be appointed as auditor of a company (within the meaning of this Act) in the same manner and subject to the same provisions as an application under that section for authorisation to be appointed as auditor of a company (within the meaning of that Act).
(6) Regulations under section 80E may modify the application of subsection (4).
[S 80C inserted by Companies (Amendment) Act 2009 s 29.]
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Registration is required to access the free version of the Issued Standards, which do not include additional documents that accompany the full standard (such as illustrative examples, implementation guidance and basis for conclusions).
A complete set of financial statements includes:
The names of the main statements are not mandatory.
IAS 1 Revised also requires a statement of financial position at the start of the earliest comparative period where there has been a retrospective adjustment to the accounts or reclassification of items.
The statement of profit or loss and other comprehensive income, as the name suggests, presents profit and loss for the period as well as other comprehensive income. Other comprehensive income includes income and expenses not recognised in profit or loss such as revaluation surpluses. The statement of profit or loss and other comprehensive income may be presented either as one statement or a separate statement of profit or loss and statement showing other comprehensive income.
The standard provides guidance on the form and content of the financial statements and the underlying accounting concepts. It also requires financial statements to present fairly the position, performance and cash flows of an entity. This is normally achieved by the application of IFRS.
ED/2019/7 General Presentation and Disclosures was issued in December 2019. This is the exposure draft of a proposed new standard that would replace IAS 1. The standard would carry forward most of the current requirements of IAS 1 and add supplementary requirements, including:
All amendments issued up to and including the publication date of 1 January 2022 are included within the IFRS Foundation’s latest version of the issued standard: 2022 Issued Standard – IAS 1 . Issued amendments may, therefore, have a mandatory effective date that is later than 1 January 2022 – see below for details.
Any amendments issued after 1 January 2022 will not be included in the IFRS Foundation’s 2022 Issued Standards but will be listed below and identified as such.
See the Corporate Reporting Faculty’s annual IFRS factsheets for a more detailed discussion of recent IFRS amendments.
Mandatory date: Annual periods beginning on or after 1 January 2024. Earlier application is permitted.
Issue date: October 2022 (not included within the IFRS Foundation’s 2022 Issued Standards).
The amendments specify that the classification of a liability as current or non-current is only affected by covenants that an entity must comply with on or before the end of the reporting period. They also require disclosure of information that allows users of financial statements to understand the risk that non-current liabilities with covenants could become repayable within 12 months.
This amendment has been endorsed for use in the UK. It is not yet endorsed for use in the EU as at 25 July 2023. Read more on UK endorsement and EU endorsement of IFRS standards.
For a more detailed discussion of the amendment, read the faculty’s factsheet:
Mandatory date: Annual periods beginning on or after 1 January 2024 (deferred from 2023). Earlier application is permitted.
IAS 1 is amended to clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period. Expectations about whether an entity will exercise a right to defer settlement of a liability do not affect its classification. The amendments also clarify that settlement is the transfer of cash, equity instruments, other assets or services.
The deferral of the effective date to 2024 is included in the Non-current Liabilities with Covenants amendment to IAS 1.
Mandatory date: Annual periods beginning on or after 1 January 2023. Earlier application is permitted.
The amendments to IAS 1:
IAS 1 is amended to:
IAS 1 is amended to refer to portfolios of contracts rather than groups of contracts within the scope of IFRS 17.
Mandatory date: Annual periods beginning on or after 1 January 2020. Earlier application is permitted.
The definition of material is amended to be as follows:
Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.
Examples of circumstances that may result in material information being obscured are added to the standard as a result of the amendment, as is guidance on users of financial statements.
Mandatory date: Annual periods beginning on or after 1 January 2020. Earlier application is permitted if an entity also applies the amendments to other IFRS Accounting Standards at the same time.
IAS 1 is updated to refer to the 2018 Conceptual Framework rather than the Framework for the Preparation and Presentation of Financial Statements when referring to materiality, definitions of elements and their recognition criteria and the objective of financial statements.
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.
The following amendments must be made to IAS 1 in order to achieve compliance with the Companies Act and related Regulations:
FRS 101 paragraph 8(f) states that a qualifying entity is exempt from the IAS 1 requirement to present the following within a set of financial statements:
IAS 1 paragraphs for which exemption is available: 10(d), 10(f), 16, 38A-D, 40A-D, 111, 134-6.
The Corporate Reporting Faculty's annual IFRS factsheets provide a more detailed discussion of recent IFRS amendments.
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UK Financial Statements: Presentation and Disclosure Requirements
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What are provisions relating to financial statements under the New companies act 2013
1. Section 129 of companies act 2013, provides for preparation of financial statements.
2. 2(40) to include balance sheet, profit and loss account/income and expenditure account, cash flow statement, statement of changes in equity and any explanatory note annexed to the above.
3. New section 129 corresponds to existing section 210. It provides that the financial statements shall give a true and fair view of the state of affairs of the company and shall comply with the accounting standards notified under new section 133.
4. It is also provided that the financial statements shall be prepared in the form provided in new schedule III of Companies Act, 2013 .
5. It may be noted that in the new schedule III the provisions for preparation of balance sheet and statement of profit and loss have been given which are on the same lines as in the existing schedule VI.
6. Further, in the new Schedule III detailed instructions have been given for preparation of consolidated financial statements as consolidation of accounts of subsidiary companies is now made mandatory in section 129.
7. It may be noted that for the first time a provision has been made in the new section 129(3)that if a company has one or more subsidiaries it will have to prepare a consolidated financial statement of the company and of all the subsidiaries in the form provided in the new schedule III of Companies Act, 2013 .
8. The company has also to attack along with its financial statement, a separate statement containing the salient features of the financials of the subsidiary companies in such form as may prescribed by the rules.
9. It is also provided that if the company has interest in any associate company or a joint venture the accounts of that company as well as joint venture shall be consolidated.
10. For this purpose associate company has been definedinnewsection2(6) company has significant influence i.e. it has. 20% of the total share capital of the company or has control on the business decision under an agreement.
11 .The Central Government has power to exempt any companies from complying with any of the requirements made under the section.
COMMENTS
426B. Section 172 (1) statement to be made available on website. (1) This section applies if—. (a) a company is required by section 414CZA to include a section 172 (1) statement in its strategic report for a financial year, and. (b) the company is an unquoted company in relation to that financial year.
PART 1 GENERAL RULES AND FORMATS SECTION A GENERAL RULES. 1. —(1) Subject to the following provisions of this Schedule— (a) every balance sheet of a company must show the items listed in either of the balance sheet formats in Section B of this Part, and (b) every profit and loss account must show the items listed in any one of the profit and loss account formats in Section B.
Companies Act 2006, Chapter 4 is up to date with all changes known to be in force on or before 15 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. ... the date of the statement, and (f) the financial year to which the guarantee ...
An outline of the requirements for a company's financial statements (balance sheet, profit and loss account and notes to the accounts) under the Companies Act 2006 and related regulations, for financial years beginning on or after 1 January 2016, across different sizes of company and different accounting frameworks that can be applied under UK law.
Section 399(2) of the Companies Act 2006 states that if, at the end of the year, a company is a parent company, the directors must prepare group accounts for the year as well as individual accounts unless the company is exempt from the requirement. The Companies Act 2006 provides an exemption from preparing consolidated financial statements
Published: 10 Sep 2019. The Companies Act 2006 (CA 2006) requires directors to ensure that the annual accounts give a true and fair view. In this section the Corporate Reporting Faculty provides an overview of UK financial reporting regulation for different types of company. Part 15 of CA 2006 includes requirements relating to the preparation ...
SCHEDULE III[1] (See section 129) [Effective from 1st April, 2014] [2][Division I Financial Statements for a company whose Financial Statements are required to comply with the Companies (Accounting Standards) Rules, 2006. GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET AND STATEMENT OF PROFIT AND LOSS OF A COMPANY] General Instructions 1. Where compliance with the requirements
The accounting and reporting requirements under the CA 2006 are designed to ensure that shareholders and other stakeholders have access to accurate and reliable information about the financial performance and position of a company. The requirements also help to protect creditors and other third parties by ensuring that companies are transparent ...
15 the Companies Act 2006, plus associated statutory instruments, with interpretation for the public sector context. The remaining chapters of Part 15 will not apply. Part 15 of the Companies Act 2006 where appropriate. If this chapter does not refer to specific chapters or sections of that Part, then those chapters and sections do not
Section 128(1) of Companies Act, 2013 requires that every company shall prepare and keep at its registered office, books of account and. relevant books and papers and financial statements for every financial year which give a true and fair view of the state of affairs of the company, including that of its branch office or offices, if any Note ...
required to prepare Financial Statements as per Companies (Accounting Standards) Rules, 2006, as per the format of Division I to Schedule III to the Act; 1.2.2 'Division II' - 'Ind AS Schedule III' (Refer Annexure A, Pg 100 ) was inserted to give a format of Financial Statements for companies that are required to comply with the Companies
Financial Statements Presentation under Companies Act, 2013… 2 Financial Statements under Companies Act, 2013 Financial Statement: Section 2(40) Financial Statement in relation to a company, includes- (i) a balance sheet as at the end of the financial year; (ii) a profit and loss account, or in case of company carrying out activity
(3) The financial statements must be prepared by the company within 6 months of the date of deposit of the demand. (4) A company that contravenes subsection (1) commits an offence. [S 80A inserted by Companies (Amendment) Act 2009 s 29.] 80B Additional provisions concerning presentation of financial statements
Companies excluded from being treated as medium-sized. 468. General power to make further provision about accounts and reports. 468A. Use or disclosure of profit and loss accounts for certain companies. 469. Preparation and filing of accounts in euros. 470. Power to apply provisions to banking partnerships.
Amendments to IAS 1 Presentation of Financial Statements have been issued to clarify that the classification of liabilities as current or non-current should be based on rights that exist at the end of the reporting period. Highlighting different perspectives on the IASB's Exposure Draft, starting with ICAEW's views.
The true and fair override, as noted by the FRC, is enshrined in both FRS 102 and IFRS (specifically IAS 1, Presentation of Financial Statements) ... The FRC statement stresses that auditors are legally obliged, under Companies Act 2006, to state, when giving their opinion on a company's financial statements, whether the accounts, in their ...
Chapter 2: Companies Act 2006 Issues. UK Financial Statements: Presentation and Disclosure Requirements. Author: Steve Collings Publisher: Bloomsbury Professional
accordance with the requirements of Part 15 of the Companies Act 2006 and 'The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' (SI 2008/410). These financial statements also include voluntary disclosures that illustrate certain aspects of disclosure under FRS 102.
Companies Act 2006 and the accounting and disclosure requirements within the related accounting regulations, FRS 18 Accounting policies, Financial Reporting Standard for Smaller Entities 2008 (FRSSE ... Presentation of Financial Statements deems the foreseeable future to be a period of 12 months from the entity's reporting date. It should be ...
4. It is also provided that the financial statements shall be prepared in the form provided in new schedule III of Companies Act, 2013. 5. It may be noted that in the new schedule III the provisions for preparation of balance sheet and statement of profit and loss have been given which are on the same lines as in the existing schedule VI. 6.
408 Individual profit and loss account where group accounts prepared. (1) This section applies where—. (a) a company prepares group accounts in accordance with this Act, and. [ F1 (b) the company's individual balance sheet shows the company's profit and loss for the financial year determined in accordance with this Act.]
ond. the scope of this Framework.The Objective of Financial Statements12. The objective of financial statements is to provide information about the financial position, performance and cash flows of an enterpris. th. t is useful to a wide range of users in making economic decisions.13. Financial st.
Required subscriptions. Companies Act 2006 Part 1 General Introductory Provisions Part 2 Company Formation Part 3 A Company's Constitution Part 4 A Company's Capacity and Related Matters Part 5 A Company's Name Part 6 A Company's Registered Office [and Email Address] Part 7 Re-Registration as a Means of Altering a Company's Status Part 8 A ...
Acting Comptroller Issues Statements on Bank Liquidity and Bank Resolvability. ... Financial Data Transparency Act of 2022: Notice of Proposed Rulemaking. Bulletin; Aug 15, 2024 ... The OCC safeguards a diverse banking system that makes financial services accessible to underserved consumers and communities. More More.