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Disclosure requirements for #Demonetised Notes under Schedule III of the Companies Act, 2013

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On 30th March, 2017 Ministry of Corporate affairs (#MCA) has amended Schedule III of the Companies Act, 2013 to include disclosure related to "Specified Bank Notes" held and transacted during the period of demonetisation from 8th November, 2016 to 30th December, 2016.

The Schedule III to the Companies Act, 2013 provides general instructions for preparation of the balance sheet and the statement of profit and loss of a company i.e. Financial Statements of the company. On 6th April, 2016 #MCA amended Schdule III for inclusion of new financial statements format for the companies implementing #IndAS. With this amendment Schedule III is now divided into two parts having Division 1 which specifies format of Financial Statements for Companies following existing Accounting Standards (not following #IndAS) and Division 2 which specifies format of Financial Statements for Companies implementing #IndAS

With this recent amendment both of the division gets disclosure clause added to the Part I under the heading “General instructions for preparation of Balance Sheet”
 
Following disclosure is required for all the companies whether following Companies (Accounting Standard) Amendment Rules, 2016 [i.e Companies covered by Division I] or Companies (Indian Accounting Standards) Amendment Rules, 2016 [i.e. Companies covered by Division II]

for the purpose of this disclosure, Specified Bank Notes shall have the meaning provided in the notification S.O. 3407(E) dated the 8th November, 2016 of the Government of India which refers bank notes of denominations of the existing series of the value of five hundred rupees and one thousand rupees as Specified Bank notes. 

Naresh Soneji
Follow on Twitter @financegupshup 

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