About balance sheet

Balance Sheet reflects the fianancial positon of Company. It is not at the discretion of those who prepare Balance Sheet. It should be prepared as per Schedule III of Companies Act, 2013 and should reflect true and fair position of COmpany. There is no such a concept of Increasing or decreasing trend.

Balance Sheet reflects the fianancial positon of Company. It is not at the discretion of those who prepare Balance Sheet. It should be prepared as per Schedule III of Companies Act, 2013 and should reflect true and fair position of COmpany. There is no such a concept of Increasing or decreasing trend.

Trend is not shown at the time of preparation of balance sheet. Since is a practice done by auditors to comply with Standard on Auditing i.e. SA 520

i prepared a balance sheet

But the company MD says that fund should be in any one form of asset

how the total can be less than preivious balance sheet total.

and i checked many other companies BS all most all shows incresing trend

kindly suggest on this matter

 

Increasing trend and preperation of Balance Sheet are two different components. Increasing trend is more of a financial nature where as the latter is related to complaince framework

Dear Ramesh

It is not about that figure in balance shouid always be in increasing trend..Since an all case we have to comply with Schdule III of Company act 2013.

Since it is the requirment of company act 2013 to give true and fair view.

Dear Ramesh

It is not about that figure in balance shouid always be in increasing trend..Since an all case we have to comply with Schdule III of Company act 2013.

Since it is the requirment of company act 2013 to give true and fair view.

Dear, Trend is just for the comparison of the company's financial position with last year figures. Trend reflects the performance of the company in the current year compared to last year.

Trend analysis is only for management purposes as auditor u can perform as per SA 520, for comparison purpose. It doesn't means that financial performance and position Should be in increasing trend. Trend analysis is a technique of audit u do for better knowledge. It is not for preparation and presentation of financial statements. So it is not mandatory to be the balance sheet should shows increasing trend. Comply the regulatory reporting free work ie. Schedule III which doesn't says any trend analysis.

It is not necessary that the BS should be increasing trend but financials i.e. ratio & sales, capital, reserve must be increasing and improving trend for bank finance purpose.

Just prepare a comparitive balance sheet consisting PY figures you will come to know the reason and you can explain.