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

Hello Dear CA Final Students,

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 http://www.castudynotes.com website and ALL the Best for Your Upcoming Exams.

CA STUDY NOTES

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.

Share this Post with your friends & help them to PASS.

Here all materials, PDFs are provided from various available sources, as we never own them, or scan them, we ar just facilitators, so we are not intentionally violating any laws, still if you feel that something should not be on site, you can contact us through email: infocastudynotes@gmail.com

JOIN OUR MAILING LIST:

Subscribe to hear from us about new addition to castudynotes.com website and other important stuff.

All PDF which are provided here are for Education purposes only. Please utilize them for building your knowledge. We request you to respect our Hard Work. Our Intention is to provide free Study Materials for all Aspirants and we believe Education Should be free for All, and for the same reason, we gathered everything and assembled at one place.

Disclaimer:-

castudynotes.com does not own this Materials, Test Series or anything we share, neither created nor scanned. we just providing the links already available on Internet. and also we doesn’t Own any trademarks or copyrights of any institute, Teachers and others which we share are purely for Education purpose only and all copyrights and Trademarks lies with the respective Institutes/Comapanies only. We don’t intend to either harm or encash your hard work, if any way you feel that our content violates any Copyrights or any privacy laws or if you have any issue, please let us know at infocastudynotes@gmail.com and we will definitely try to provide possible solution for the same. Thank you.

kindly Leave a Reply Here