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Statement of changes in equity

sreekanth p d (article) (318 Points)

04 June 2015

Dear all Can any one tell the applicability of Statement of changes in equity as per Schedule III of Companies Act 2013 and for that any format is there kindly provide. Thanks in advance... Reply Asap

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Deepak Gupta (CA Student) (15922 Points)
Replied 05 June 2015

1. Format of statement of changes in equity is neither provided in Schedule III nor in the existing accounting standards.
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2. This concept is from IFRS wherein as per International Accounting Standard 1 (Presentation of Financial Statements), preparation of statement of changes in equity is required.
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2. As per sec. 2(40) of the Companies Act, 2013, financial statement includes, statement of changes in equity, if applicable.
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3. The words ‘if applicable’ implies that the same will be applicable under Ind-AS only due to the following reasons:
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i) ICAI has issued exposure draft for revision of existing AS-1 and the objective of revision states that, “revision of the existing AS 1 does not contain various requirements included in Ind AS 1 such as the concepts of...statement of changes in equity...”. Refer to pg. 25 of this -> link
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ii) Para 10 of Ind-AS 1 (Presentation of Financial Statements), states that financial statements will include statement of change in equity.
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iii) Para 106 of Ind-AS 1 mentions the information to be presented in such statement.
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4. MCA has notified Ind-AS [Companies (Indian Accounting Standards) Rules 2015], w.e.f. 01.04.2015, applicable to certain class of entities. [Download the standards]
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5. Snapshot of Ind-AS Roadmap (Ind-AS Background Material by ICAI Committee)
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