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Applicabilty of mca notification for financial statement issued on 30.3.2016

ankush (none) (102 Points)

26 April 2016

whether companies have to prepare thier balance sheet as per notification issued by mca on 30.3.2016 or as per rule 2006 of mca about accounting standard

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Sandeep Garg (Consolidation and IndAS Application) (1056 Points)
Replied 26 April 2016

Hi...there is some confusion about the applicability of Revised AS.

However, since it was issued on 30 March, considering the Rule 3(2), companies are opting for applying these revised AS from 1.4.2016. You can refer infosys published financials.

Thanks

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ankush (none) (102 Points)
Replied 26 April 2016

sir can you text rule 3(2) for reading i did not find it

Sandeep Garg (Consolidation and IndAS Application) (1056 Points)
Replied 26 April 2016

Hi...same is reproduced below -

3. Accounting Standards.-

(2) The Accounting Standards shall come into effect in respect of accounting periods commencing on or after the publication of these Accounting Standards.

Thanks

ankush (none) (102 Points)
Replied 26 April 2016

Thanks

Sandeep Garg (Consolidation and IndAS Application) (1056 Points)
Replied 26 April 2016

ICAI Announcement

Applicability of Accounting Standards amended by MCA vide Notification dated March 30, 2016 - (26-04-2016)

1.   The Ministry of Corporate Affairs, Government of India, vide Notification No. G.S.R. 739(E), dated 7th December, 2006, notified Companies (Accounting Standards) Rules 2006, in the Official Gazette Rule 1, sub-rule (2), provided that the said Rules “shall come into force on the date of their publication in the Official Gazette”. Rule 3, sub-rule (2), of the said Rules provided that the Accounting Standards viz., AS 1 to AS 7 and AS 9 to AS 29, prescribed therein “shall come into effect in respect of accounting periods commencing on or after the publication of these Accounting Standards.”

2.   Ministry of Corporate Affairs, vide its Notification No. G.S.R. 364 (E) dated 30th March, 2016, has issued Companies (Accounting Standards) Amendment Rules 2016, amending AS 2, AS 4, AS 13, AS 21 and AS 29; and replacing the existing AS 6 and AS 10 with revised AS 10. While sub-rule (2) of Rule 1 of the aforesaid Amendment Rules provides that these Rules shall come into force on the date of their publication, these Rules do not specify in respect of which accounting periods the amended Accounting Standards shall come into effect. It is noted that Rule 3, sub-rule (2), of the 2006 Rules, the relevant extract of which is reproduced in paragraph 1 above, has not been amended by the said Amendment Rules. In view of this, many stakeholders have approached the Institute of Chartered Accountants of India, to seek guidance on the applicability of the amended Accounting Standards particularly in the case of listed companies who prepared their financial results of preceding quarters based on the unamended Accounting Standards.

3.   With a view to have consistent approach by companies on the applicability of the Accounting Standards as amended by the Companies (Accounting Standards) Amendment Rules, amended Accounting Standards should be followed for accounting periods commencing on or after the date of publication of the notification in the Official Gazette.

So, now there is no ambiguity and these amendments are not applicable for FY 15 - 16.

Thanks