Important Points in Preparation of Schedule 3 Division 2 Financial Statements (Analysis of FS)

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We are Sharing With You CA Final FR Important Points in Preparation of Schedule 3 Division 2 Financial Statements (Analysis of FS) . So kindly Check Out our website and ALL the Best for Your Upcoming Exams.


Important Points in Preparation of Schedule 3 Division 2 Financial Statements (Analysis of FS)

A Compilation of All Adjustments asked in previous RTPS / MTPS / Exam Questions

✅ PPE instead of Fixed Assets.
✅ Assets under lease (ROU Asset) will be separately shown under Tangible Assets under PPE.
✅ Goodwill acquired in a business combination to be shown separately from Intangible Assets under Ind As 38.
✅ DTA & DTL should be netted off.
✅ Bank deposits with more than 12m to maturity should be disclosed under OTHER FINANCIAL ASSETS under Non Current Assets.
✅ Other Non Current Assets include Capital Advances.
✅ Non Current Assets held for Sale should be shown as a separate line item.
✅ Bonus shares issued, Shares issued for consideration other than cash & shares bought back should be DISCLOSED in Notes to Accounts.
✅ Debit balance of Profit and Loss should be shown as NEGATIVE FIGURE under Retained Earnings which will be shown under Other Equity.
✅ Reserve for Foreseeable Loss should NOT BE INCLUDED in RESERVES.
✅ Interest Accrued but not due/ Interest Accrued And Due should be included in Current Liabilities under Other Financial Liabilities.
✅ Proposed Dividend after the end of the year shall be DISCLOSED in Notes to Accounts and shall not be added in Current Liabilities.
✅ Other Financial Liabilities include Unpaid Dividends, Application money received for allotment of shares to the extent refundable.

❌ Redeemable Preference Shares are presented under Non Current Liabilities.
❌ Govt Dues and Tax Liabilities aren’t FINANCIAL LIABILITIES. They need to be disclosed under Other Current Liabilities/Current Tax Liabilities.
❌ Unearned Revenue isn’t a FINANCIAL LIABILITY. It should be shown under Other Current Liabilities.

❕ Preference Dividend will be shown as Finance Cost in SOPL.
❕If a company applies retrospective application of Accounting Policy as per Ind As 8, the company shall prepare 3 Set of Balance Sheet (End of FY, Comparative B/S for the Previous Year, Balance Sheet at the Beginning of the Comparative Previous Year. For ex, 31/3/20, 31/3/19 & 1/4/18).
❕ Non Controlling Interest should be shown as a part of Equity in CFS.
❕Profit & Loss attributable to Owners and NCI should be presented separately.
❕SOPL shall include Profit & Loss for the Current Period + OCI for the Period.
❕ Foreign Currency Translation Reserve as per Ind As 21, FV Reserve as per Ind As 109 & Hedging Reserve as per Ind As 109 shall be RECLASSIFIED TO OCI.
❕ Revaluation Reserve as per Ind As 16, FV Reserve as per Ind As 109 (FVTOCI Equity) & Remeasurement Reserve as per Ind As 19 shall be NOT BE RECLASSIFIED.

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