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Accounting Standard as Per Companies Act 2013

The financial statement of the company is required to be prepared in compliance with the accounting standards issued by the central government and as per schedule III of the act. Section 133 prescribes that the central government on the recommendation of the Institute of chartered accountants of India and in consultation with the National Financial Reporting Authority (NFRA) shall prescribe the accounting standards.
The standards are a set of rules and guidelines issued for preparation of uniform and consistent financial statement. The accounting standards also prescribe necessary disclosures to be made while preparing the financial statements. The objective of the accounting standards are to prescribe requirements for recognition of business information, the methods of its measurements and its presentation and disclosure required concerning monetary transactions.
The accounting standards apply to all companies irrespective of its size and type. The statutory auditor of the company is under a statutory duty to report any variance from the prescribed accounting standards. While recording the transactions of financial nature in the books of account the accountant or the bookkeeper must follow the rules in word and spirit.

About Setindiabiz

Setindiabiz is an organized team of experienced CA, CS, & Lawyers, duly supported by a pool of trained accountants & paralegal staff that provides quality & affordable compliance services to startups & small businesses in India. The views, statements and recommendations expressed in this article or post are only for the sole objective of providing information, and it does not constitute professional advice or recommendation of the company. Neither the author nor the company or its affiliates accepts any liability for any loss or damage arising from any information in this article or any actions taken in reliance thereon.
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