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Financial statements

Souvik Kumar Ghosh (CA Final) (1368 Points)

26 November 2011

Am i required to show last years column in the financial statements of a comapny in the in its first year?

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5 Replies

(Guest)

last year records shown in current year only for comparison in most of the caes .....then in first year there is no such record ....then I dont think so its necessary......

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Ateeq (CA - Final) (218 Points)
Replied 26 November 2011

Dear Souvik,

It depends upon the company or identity being audited.

if it is a company then, it is mandatory to disclose the last years balance, as per the requirements of Sch. VI of companies act 1956. Moreover it is more prudent to disclose it. As it helps the business analyst in decision making.

CA. Akhil Maangal (Head - Finance & Accouunts) (131 Points)
Replied 26 November 2011

How one can show last year figures if the entity is in first year itself??? Last year figures are shown for comparison and hence need not to be shown for the entities in its first year.

Souvik Kumar Ghosh (CA Final) (1368 Points)
Replied 27 November 2011

Originally posted by : Akhil Maangal
	How one can show last year figures if the entity is in first year itself??? Last year figures are shown for comparison and hence need not to be shown for the entities in its first year.