Explore the final accounts of joint stock companies in India under Ind AS-1 and Schedule III. Understand the changes as per Companies (Indian Accounting Standards) Amendment Rules 2023, covering financial statements, shareholding details, cryptocurrency disclosure, and more. Stay updated on the latest amendments and comprehensive guidelines for presenting true and fair financial statements, including the significant accounting policies and notes.

Preparation of Financial Statements of Joint Stock Companies in India by incorporating Changes as per Companies (Indian Accounting Standards) Amendment Rules 2023. (Ind AS: 1-Presentation of Financial Statements).

Final Accounts of Joint Stock Companies as per Ind AS-1and Schedule III of the Companies Act 2013 and Ministry of Corporate Affairs Notification on 24 March 2021 and Latest Amendments to IndAS-1 as per Companies (Indian Accounting Standards) Amendment Rules, 2021 vide Notification No. G.S.R. 419(E) Dated: 18th June, 2021 and incorporating Changes as per Companies (Indian Accounting Standards) Amendment Rules 2022 and incorporating Changes as per Companies (Indian Accounting Standards) Amendment Rules 2023.

The format of the financial statements for a company whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015 and its amendments  has been prescribed in the Division II of Schedule III of companies Act.

Shareholding of Promoter.

Notes on share capital shall disclose the following

Sr. no Promoter’s Name No. of shares % of total shares % change during the year

Details of Crypto Currency or Virtual Currency:

  • Where the Company has traded or invested in Crypto currency or Virtual Currency during the financial year, the following shall be disclosed: –
  • profit or loss on transactions involving Crypto currency or Virtual Currency
  • amount of currency held as at the reporting date,
  • Deposits or advances from any person for the purpose of trading or investing in Crypto Currency/ virtual currency.

Depending upon the Total Income of the company, the figures appearing in the Financial Statements shall be rounded off as below:

Total Income Rounding off
(i) less than one hundred crore rupees To the nearest hundreds, thousands, lakhs or millions, or decimals thereof
(li) 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.

I. Complete set of financial statements as per Ind AS-1

1. A Balance sheet at the end of the period

2. A Statement of profit and loss for the period

3. Statement of changes in equity for the period

4. A Statement of cash flows for the period

5. Significant accounting policies and other explanatory notes

6. Comparative information in respect of the preceding period

7. A balance sheet as at the beginning of the earliest comparative period.

II. General features of the financial statements as per Ind AS-1

a. True and fair presentation and compliance with Ind AS.

b. Going concern

c. Accrual basis of accounting

d. Materiality and aggregation

e. Offsetting

f. Frequency of reporting.

g. Comparative information.

h. Consistency of presentation.

III. Statement of Profit and Loss For the year ended 31st March, —

Particulars Note No Amount
Revenue from Operations
Other Income
Total Income
Cost of Material Consumed
Purchase of Stock-in-Trade
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade
Excise Duty
Employee Benefits Expense
Finance Costs
Depreciation/Amortization and Depletion Expense
Other Expenses.
Total Expenses
Profit Before Exceptional Item and Tax
Exceptional Item (Net of Tax)
Profit Before Tax.
Tax Expenses
Current Tax
Deferred Tax
Profit for the Year
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.iii. Items that will be reclassified to Profit or Loss
iv. Income tax relating to items that will be reclassified to Profit or Loss
Total Other Comprehensive Income/(Loss) for the Year (Net of Tax)
Total Comprehensive Income for the Year
Earnings Per Equity Share of Face Value of ` 10 each
Basic (in `) – After Exceptional Item
Basic (in `) – Before Exceptional Item
Diluted (in `) – After Exceptional Item
Diluted (in `) – Before Exceptional Item
Significant Accounting Policies
See accompanying Notes to the Financial Statements

 IV. Statement of Changes in Equity For the year ended 31st March.

A. Equity Share Capital

Balance at the beginning of the current reporting period Changes in equity share capital during the current year Balance at the end of the current reporting period

B. Other Equity.

Balance as on

Opening date

Total Comprehensive Income of the year Transfer (to)/ from Retained Earnings Transfer (to)/from General Reserve Dividends Balance as on closing date
General Reserve
Retained Earnings

V. Balance sheet.

Particulars Note No Amount
Non-Current Assets    
Property, Plant and Equipment    
Capital Work-in-Progress    
Other Intangible Assets    
Intangible Assets Under Development    
Financial Assets.    
Deferred Tax Assets (Net)    
Other Non-Current Assets    
Total Non-Current Assets    
Current  Assets    
Financial Assets
 Trade Receivables
 Cash and Cash Equivalents.
 Other Financial Assets
Total Current Assets.
Assets Held for Sale.
Total Assets

Equity and Liabilities.    
 Equity Share Capital    
 Other Equity    
 Non-Current Liabilities    
 a. Financial Liabilities    
i. Borrowings

(ia) Lease liabilities]

(ii) Trade Payables

  iii.Other Financial Liabilities    
 Deferred Payment Liabilities    
 c.Deferred Tax Liabilities (Net)    
 Deferred Tax Liabilities (Net)    
 d. Other Non-Current Liabilities
 Total Non-Current Liabilities
Current Liabilities 

a. Financial Liabilities 

(i) Borrowings.

(ia) Lease liabilities

(ii) Trade Payables:-

 Other Financial Liabilities
 Other Current Liabilities
Total Current Liabilities
 Liabilities directly associated with Assets Held for Sale
 Total Liabilities 
Total Equity and Liabilities

VI. Companies (Indian Accounting Standards) Amendment Rules, 2023.

Following amendments have been made with respect to Ind AS -1 as per Companies (Indian Accounting Standards) Amendment Rules, 2023.

(i)In paragraph 7,before the definition of “ General purpose financial statements”, the following shall be inserted, namely:-

“Accounting policies are defined in paragraph 5 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, and the term is used in this Standard with the same meaning”;

(ii)in paragraph 10, an item (e ) ,for the words “significant accounting policies”, the words “material accounting policy information”, shall be substituted.

(iii)In paragraph 114, in item (c),for sub-item (ii), the following sub-item shall be substituted, namely:-“(ii)material accounting policy information (see paragraph117);”,

(iv)For paragraph 117,the following paragraph shall be substituted, namely:-

“Disclosure of accounting policy information

117. An entity shall disclose material accounting policy information (see paragraph 7). Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.

Stock Companies

(v) After paragraph 117, The following shall be inserted, namely:-

“117 A. Accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may nevertheless be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material.

117 B. Accounting policy information is expected to be material if users of an entity’s financial Statements would need it to understand other material information in the financial statements.

For example, an entity is likely to consider accounting policy information material to its financial statements if that information relates to material transactions, other events or conditions and:

(a) the entity changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;

(b)  The entity chose the accounting policy from one or more options permitted by Ind ASs.

(c) the accounting policy was developed in accordance with IAS 8 in the absence of an IFRS that specifically applies;

(d) the accounting policy relates to an area for which an entity is required to make significant judgements or assumptions in applying an accounting policy, and the entity discloses those judgements or assumptions in accordance with paragraphs 122 and 125; or

(e) the accounting required for them is complex and users of the entity’s financial statements would otherwise not understand those material transactions, other events or conditions—such a situation could arise if an entity applies more than one IFRS to a Class of material transactions.

117C. Accounting policy information that focuses on how an entity has applied the requirements of the IFRSs to its own circumstances provides entity-specific information that is more useful to users of financial statements than standardized information, or information that only duplicates or summarizes the requirements of the IFRSs.

117D. If an entity discloses immaterial accounting policy information, such information shall not Obscure material accounting policy information.

117E An entity’s conclusion that accounting policy information is immaterial does not affect the related disclosure requirements set out in other IFRSs.

(vi) paragraphs 118,119,120 and 121 shall be omitted;

(vii) for paragraph 122, the following paragraph shall be substituted, namely:-

An entity shall disclose, along with material accounting policy information or other notes, the judgements, apart from those involving estimations (see paragraph 125), that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognized in the financial statements.

(viii) Amendments in Appendix I.

(Republished with amendments)

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February 2024