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Mentioning equity shares in Balance sheet

Jayanta Bandyopadhyay (315 Points)

28 September 2024

(a) Equity shares of Rs.10 each with voting rights

Is it mandatory to write this fashion elsewhere in annual report?

(b) Company is making continuous loss over 3 years- should we tell auditors to mentuon this in report?

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2 Replies

Adhiti Mehta (ACCA student ) (37 Points)
Replied 28 September 2024

In financial statements, particularly the notes to accounts section, the presentation of equity share capital is typically done in a standardized format. It's not always mandatory to specify "Rs. 10 each with voting rights" in every section of the annual report, but it should be clearly mentioned in sections that describe share capital.

In the Balance Sheet or Notes: The face value of shares and voting rights should be mentioned clearly, especially in the "Share Capital" note.
Elsewhere in the report (like the director’s report): It's not necessary to mention the face value or voting rights unless it is particularly relevant to the context, such as during a rights issue or an extraordinary corporate action.

I have learned this after taking admission in ACCA.