Though institute says the new companies act effects the financial reporting paper for november 2014 exam, I thing the imapct is almost negligible. Am I right?
Is the updated corporate laws book by munish bhandari available for novmber 2014 in market?
Arun I agree with you.
But the changes are
1 CSR Report
2 Schedule vi is replaced by schedule iii
3 Form AOC 1 instead of report u/s 212
And one change now while determining whether a company is a subsidary, we calculate 50% of Total Share capital rather than 50% of Equity Share capital, but the thing is AS 21 IS unchanged so i guess we will be solving by AS only
So will DS Rawat 24th Edition do for Nov 14?
| Originally posted by : Rahul | ||
 |
Arun I agree with you. But the changes are 1 CSR Report 2 Schedule vi is replaced by schedule iii 3 Form AOC 1 instead of report u/s 212 And one change now while determining whether a company is a subsidary, we calculate 50% of Total Share capital rather than 50% of Equity Share capital, but the thing is AS 21 IS unchanged so i guess we will be solving by AS only |
 |
Also Schedule III doesn't differ much from Schedule VI
| Originally posted by : priyatambika | ||
|
Plz clear it which option to be used to solve 50% of total share cap or 50% of equity sh cap | |
although ACT prevails ACCOUNTING STANDARDS
But Sec 12((1) of companies act 2013 clearly states that Consolidated financial statements shall be prepared in acc with AS and items in Financial statements shall comply with AS
AS 21 of NACAS/ ICAI is still not revised
So i will be solving the question in acc with AS 21
Moreover in the revised study mat they av solved acc to AS 21 I.E. TAKINGG 50% OF EQUITY SHARE CAPITAL and not total share capital
there is minor amendment in Holding as per attached file.
I dont have any question based on this.Will update soon
| Originally posted by : Rahul | ||
|
Originally posted by : priyatambika Plz clear it which option to be used to solve 50% of total share cap or 50% of equity sh cap although ACT prevails ACCOUNTING STANDARDS But Sec 12((1) of companies act 2013 clearly states that Consolidated financial statements shall be prepared in acc with AS and items in Financial statements shall comply with AS AS 21 of NACAS/ ICAI is still not revised So i will be solving the question in acc with AS 21 Moreover in the revised study mat they av solved acc to AS 21 I.E. TAKINGG 50% OF EQUITY SHARE CAPITAL and not total share capital |
|
Hi Rahul and Priyatambika, Section 129 and 133 just gives statutory recognition to the Accounting Standards. It doesnt imply that u have to follow AS even when there is a contradictory provision in the Companies Act. Where the Act provides for preparation of consolidation statements and also outlines what is a subsidiary for that purpose, u cant adopt a different meaning for subsidiary just because it is so written in AS 21. When I searched by key word "convertible" in the pdf of both study material as well as practice manual, it is clearly given as a note in every solution of consolidation problem involving preference shares, that the preference shares are assumed to be non-convertible. If ICAI wants us to adopt AS 21, why should such an assumption be made in the first place. As per AS 21, u have to consider 50% of the equity share capital only and need not be bothered about whether the preference shares are convertible or non-convertible. Then why this assumption??? So guys its pretty clear that ICAI wants u to take 50% of (equity share capital+convertible preference share capital). Of course if the question doesnt specify whether the preference shares are convertible or not, u can just make an assumption that the preference shares are non-convertible and solve the same way as in AS 21.
Please visit to following address for a comprehensive illustration on CFS topic in accordance to Schdule III of Companies Act, 2013 and Statement required u/s 129 (AOC 1) of Companies Act 2013
www.facebook.com/singhalsirclassesjaipur
CAclubindia
