Q. State the statutory provisions relating to preparation and presentation of final accounts of listed companies under companies act, 2013.
Answers
Answer:
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.
State the statutory provisions relating to the preparation and presentation of final accounts of listed companies under the companies act, 2013.
Answer:
Section 129 of the companies act 2013, provides for preparation of financial statements.
2. 2(40) should include the balance sheet, the revenue and expense account, the cash flow statement, the statement of changes in equity, and any annexing explanatory notes.
3. The new section 129 aligns with the current section 210. It states that the financial statements must conform with the accounting standards announced under new section 133 and must present an accurate and fair picture of the company's financial situation.
4. The revised schedule III of the 2013 Companies Act stipulates the format in which the financial statements must be prepared.
5. It should be noted that the rules for creating a balance sheet and a statement of profit and loss in the new schedule III are identical to those in schedule VI.
6. In addition, because section 129 now mandates the creation of consolidated financial statements, full instructions for doing so are provided in the new Schedule III.
7. It should be noted that the new section 129(3) includes a provision for the first time requiring companies with one or more subsidiaries to prepare consolidated financial statements of the parent company and all subsidiaries in the format specified in the new schedule III of the Companies Act of 2013.
8. The firm must also provide a supplementary statement that includes the key financial metrics of its subsidiary companies in the format that may be required by the regulations, in addition to its financial statement
9. The creation of a company's final accounts is governed under Section 210 of the Companies Act. Within 18 months of the company's formation date and afterward once a year, the board of directors must present the company's balance sheet and profit and loss account to the company's general meeting.
10. According to Section 129 of the Companies Act of 2013, the financial statements must be in accordance with Accounting Standards and must follow Schedule III of the CA, 2013, and they must provide an accurate and fair representation of the company's financial situation.