Format for Preparing Financial Statements for IND-AS Companies

Division II, Schedule III of the Companies Act, 2013 prescribes the format for financial statements of companies in India that follow Indian Accounting Standards (IND-AS). This format is applicable to all IND-AS compliant companies except banking companies, insurance companies, and non-banking financial companies (NBFCs).

The key financial statements required are:

1. Balance Sheet
2. Statement of Profit and Loss
3. Statement of Changes in Equity
4. Statement of Cash Flows
5. Notes to Accounts

1. Balance Sheet

The Balance Sheet presents a company's financial position at a specific point in time. It follows a vertical format and classifies items as assets, liabilities, and equity.

Key features:

• Assets: Presented in the order of liquidity (ease of conversion to cash).
• Liabilities: Presented in the order of their due dates.
• Equity: Shows the shareholders' stake in the company.

Format:

Assets	Note No.	Amount (Rs.)	Amount (Rs.)
Non-Current Assets
Property, Plant, and Equipment
Capital Work-in-Progress
Intangible Assets
Financial Assets
Non-Current Investments
Deferred Tax Assets (Net)
Other Non-Current Assets
Current Assets
Inventories
Financial Assets
Trade Receivables
Cash and Cash Equivalents
Other Current Assets
Total Assets

Equity and Liabilities	Note No.	Amount (Rs.)	Amount (Rs.)
Equity
Equity Share Capital
Other Equity
Liabilities
Non-Current Liabilities
Financial Liabilities
Provisions
Deferred Tax Liabilities (Net)
Other Non-Current Liabilities
Current Liabilities
Financial Liabilities
Trade Payables
Other Current Liabilities
Provisions
Short-term borrowings
Total Equity and Liabilities

2. Statement of Profit and Loss

The Statement of Profit and Loss shows a company's financial performance over a period of time. It presents the revenues, expenses, and the resulting profit or loss.

Key features:

• Revenues: Includes revenue from operations (sales) and other income.
• Expenses: Includes cost of materials consumed, employee benefits expense, finance costs, depreciation, and other expenses.
• Profit or Loss: Calculated as revenue less expenses.

Format:

Particulars	Note No.	Amount (Rs.)
I. Revenue from Operations
II. Other Income
III. Total Revenue (I + II)
IV. Expenses:
Cost of Materials Consumed
Changes in Inventories of Finished Goods, Work-in-Progress, and Stock-in-Trade
Employee Benefits Expense
Finance Costs
Depreciation and Amortisation Expense
Other Expenses
V. Total Expenses (Sum of IV)
VI. Profit before Exceptional Items and Tax (III - V)
VII. Exceptional Items
VIII. Profit before Tax (VI - VII)
IX. Tax Expense
X. Profit for the Period (VIII - IX)

3. Statement of Changes in Equity

The Statement of Changes in Equity shows the changes in a company's equity over a period of time. It includes changes due to profit or loss, other comprehensive income, dividends, and other transactions with owners.

Key features:

• Shows the opening and closing balances of each component of equity.
• Details the changes due to various factors.

Format:

Particulars	Equity Share Capital	Other Equity	Total
Balance at the beginning of the period
Changes in accounting policy/prior period errors
Restated balance at the beginning of the period
Total Comprehensive Income for the year
Transactions with owners:
Dividends
Transfer to retained earnings
Any other change (to be specified)
Balance at the end of the period

4. Statement of Cash Flows

The Statement of Cash Flows shows the inflows and outflows of cash during a period. It classifies cash flows into operating, investing, and financing activities.

Key features:

• Provides information about how the company generates and uses cash.
• Helps assess the company's liquidity and solvency.

Format:

Particulars	Amount (Rs.)
A. Cash Flow from Operating Activities
Profit before Tax
Adjustments for:
Depreciation and Amortisation
(Other non-cash items)
Changes in Working Capital
Cash Generated from Operations
Direct Taxes Paid
Net Cash Flow from Operating Activities
B. Cash Flow from Investing Activities
(Purchase and sale of long-term assets)
(Investments and dividends received)
Net Cash Flow from Investing Activities
C. Cash Flow from Financing Activities
(Proceeds from issue of shares)
(Repayment of borrowings)
(Dividends paid)
Net Cash Flow from Financing Activities
Net Increase/Decrease in Cash and Cash Equivalents (A + B + C)
Cash and Cash Equivalents at the beginning of the period
Cash and Cash Equivalents at the end of the period

5. Notes to Accounts

The Notes to Accounts provide additional information and explanations about the items presented in the financial statements. They are an integral part of the financial statements and are essential for understanding the company's financial position and performance.

Key features:

• Provide details about accounting policies, significant events, contingencies, and other relevant information.
• Help users understand the context and assumptions behind the numbers in the financial statements.

Format:

The Notes to Accounts are presented in a narrative format and are typically organized into sections based on the items in the financial statements.

Additional Points:

• Comparative Information: IND-AS requires companies to present comparative information for the preceding period for all items in the financial statements.
• Materiality: Only material information needs to be disclosed.
• Consistency: Accounting policies should be applied consistently from period to period.
• Going Concern: Financial statements are prepared on the assumption that the company will continue to operate as a going concern.