MCA mandates companies to round off figures appearing in Financial Statements



Quick Summary
The Ministry of Corporate Affairs (MCA) has introduced an amendment to Schedule III of the Companies Act, 2013. This new rule, effective from 24th March 2021, requires companies to round off figures in their financial statements based on their total income. Importantly, if companies choose to submit absolute figures in e-forms like AOC-4, this will not be considered an incorrect certification by professionals.

MCA Mandates Financial Statement Rounding Off Rules

CLARIFICATION

Amendment to Schedule III to the Companies Act, 2013 vide MCA Notification GSR. 207(E) dated 24th March 2021 mandates companies to round off the figures appearing in the Financial Statements depending upon their total income. However, if the companies provide absolute figures in e-forms ie. AOC-4, the same shall not be treated as incorrect certification by the Professionals.

FAQ :

The MCA has mandated that companies must round off figures appearing in their financial statements, with the method of rounding depending on the company's total income.

The amendment, notified as GSR. 207(E), came into effect on 24th March 2021.

Yes, the mandate applies to companies, and the method of rounding off is determined by their total income.

If a company provides absolute figures in e-forms, such as AOC-4, it will not be considered an incorrect certification by the professionals involved.

Schedule III to the Companies Act, 2013 has been amended.




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