YEARS’ ‘second’ AMENDMENT IN ACCOUNTS RULES

Ministry of Corporate Affairs placed on its web site a DRAFT notification on 4^th September 2015 which proposed to amend the Companies (Accounts) Rules, 2015 with effect from date of publication of this notification in the official Gazette.

We will discuss here, provisions proposed to be amended by this notification:

Indian Accounting Standards:

Clause (da) in Rule 2(1) of the Companies (Accounts) Rules, 2014 is being inserted defining Indian Accounting Standards.

Indian Accounting Standards means the Indian Accounting Standards referred to in Rule 3 and annexure to the Companies (Indian Accounting Standards) Rules 2015.

Forms and Item contained in financial Statements:

A new Rule 4A is being inserted in the Companies (Accounts) Rules, 2014.

The financial statements shall be in the form specified in Schedule III of the Companies Act, 2013 and comply with the Accounting Standards (AS) or Indian Accounting Standards (Ind – AS).

The items contained in the financial statements shall be prepared in accordance with the definition and other requirements specified in the Accounting Standards (AS) or the Indian Accounting Standards (Ind – AS).

Exemption to Government Companies producing defence equipments:

Presently, Rule 8(3) talks about Matters to be included in the Board’s Report. These matters in this sub – rule are conservation of energy, technology absorption and foreign exchange earnings and outgo. Proposed proviso to exempt government companies producing defence equipments are from the requirement of this rule.

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The requirement of furnishing information and details under this sub rule shall not apply to the government companies engaged in producing defence equipments.

This is notable that all other sub – rules of Rule 8 shall still applicable to the government companies.

From for Consolidate Financial Statements:

Presently, Rule 12(1) prescribes a form AOC – 4 for filing of financial statement. Every company shall file the financial statements with Registrar together with Form AOC – 4. This sub –section is being substituted (in effect few words are being inserted) to prescribe a form for filing of consolidate financial statements.

Every company shall file the financial statements with Registrar together with Form AOC – 4 and the Consolidate Financial Statements, if any, with Form AOC – 4 CSF.

New Forms:

As expected, new Form AOC – 4 and Form AOC – 4 CSF replacing earlier prescribed Form AOC – 4