Companies Act 2013 and Accounting Standards

A collection of flashcards focused on key terms and definitions related to the Companies Act 2013 and applicable accounting standards.

Section 129 of Companies Act 2013

Requires financial statements to give a true and fair view and comply with accounting standards.

Financial Statement

Includes balance sheet, profit and loss account, cash flow statement, statement of changes in equity, and explanatory notes.

One Person Company

A company with only one person as a member as defined in Section 2(62) of Companies Act 2013.

Small Company

As per Section 2(85), a company with paid-up share capital not exceeding 4 crore rupees and turnover not exceeding 40 crore rupees.

Dormant Company

A company with no significant accounting transaction that has applied to the Registrar for dormant status.

Indian Accounting Standards (Ind AS)

Standards prescribed for the preparation of financial statements by designated classes of companies.

Compliance Obligation

Companies and their auditors must comply with Indian Accounting Standards in the preparation of financial statements.

Division I of Schedule III

Financial statements for companies required to comply with Companies (Accounting Standards) Rules, 2006.

Division II of Schedule III

Financial statements for companies that comply with Companies (Indian Accounting Standards) Rules, 2015.

NBFC (Non-Banking Financial Company)

A company whose financial statements are drawn up in compliance with the Companies (Indian Accounting Standards) Rules, 2015.