Are there any standards or guidelines for preparation of financial statement for the first year of operation of a business ?
Sandeep Garg
(Consolidation and IndAS Application)
(1056 Points)
Replied 16 October 2013
First year financials year are governed by all the standards and guidelines as applicable to other financial statements. However, reporting year may be less than the financial year, previous year figures shall be nil. And a note shall be given that since it is the first FY of the co. so PY figures are nil.
Elizabeth
(Article)
(25 Points)
Replied 16 October 2013
Thanks Sandeep, also wanted to know if there is rule that states financials can be prepared upto 18 months for the first time?
Sandeep Garg
(Consolidation and IndAS Application)
(1056 Points)
Replied 16 October 2013
As per companies act, in case of first year of a company FY may be upto 18 months and in other cases it can not exceed 15 months. ROC approval required in both the cases.
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