FINANCIAL REPORTING IN INDIA

FINANCIAL STATEMENTS Financial statement consists of:

I.

Balance sheet

II. Profit and loss account III. Cash flow statements

IV. Notes to accounts

REGULATORY FRAMEWORK OF FINANCIAL REPORTING

COMPANIES ACT, 1956 S 209 BOOKS UNDER ACCRUAL BASIS AND UNDER DOUBLE ENTRY SYSTEM AND PRESERVED FOR EIGHT YEARS (Pg 127) http://www.mca.gov.in/Ministry/actsbills/pdf/Companies_Act_1956_Part_1.pdf S 210 P&L PRESENTED AT THE AGM SHOULD NOT PREDATE THE AGM BY MORE THAN 6 MONTHS. MAXIMUM PERIOD FOR WHICH THE P&L ACCOUNT CAN BE PREPARED CAN BE 18 MONTHS. (Pg 129) http://www.mca.gov.in/Ministry/actsbills/pdf/Companies_Act_1956_Part_1.pdf BALANCE SHEET AND PROFIT AND LOSS ACCOUNT SHOULD BE AS PER S 211 http://www.mca.gov.in/Ministry/actsbills/pdf/Companies_Act_1956_Part_1.pdf

REGULATORY FRAMEWORK OF FINANCIAL REPORTING

FORMAT FOR PREPARATION OF FINANCIAL STATEMENTS (Pg 304) http://www.mca.gov.in/Ministry/pdf/Companies_Act_1956_13jun2011.pdf

REGULATORY FRAMEWORK OF FINANCIAL REPORTING

SEBI AND STOCK EXCHANGES SEBI INFLUENCES THE CONTENTS OF THE PERIODIC FINANCIAL REPORTS BY URGING STOCK EXCHANGES TO SUITABLY MODIFY THEIR AGREEMENTS WITH LISTED COMPANIES, POPULARLY KNOWN AS LISTING AGREEMENTS EG:CLAUSE 41 OF LISTING AGREEMENT http://www.bseindia.com/whtsnew/Clause41ListAg.asp INCOME TAX ACT S 145 STATES THAT INCOME FROM BUSINESS AND PROFESSION AND OTHER SOURCE SHOULD BE COMPUTED IN ACCORDANCE WITH THE METHOD OF ACCOUNTING REGULARLY EMPLOYED BY THE TAX PAYER.