27 September 2008
hi how share application money is audited. both condition when it is received from foreign, and when it is received in India. please explain through very basic.
27 September 2008
The ICAI Compendium of Opinions, [Vol. XV, (1996 Edn.) pp. 34 to 36], opines that the “share application money pending allotment” should be shown in the balance-sheet under a separate heading between “Share Capital” and “Reserves and Surplus”. · Share application money is also not an instrument, much less an Equity linked instrument.
When it is received in from India
1.It should be within authorised Share Capital of Company 2.It should not be kept more than 6 months if its above authorised capital
When it is received in from Foreign
Sectoral compliances of RBI and FEMA needs to be compiled in addition of aforesaid treatments
CAclubindia
