There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.
Assertion (A): Financial Statements of a company are prepared in the form prescribed in Schedule lll of the Companies Act, 2013.
Reason (R): Section of the Companies Act, 2013 prescribes Schedule lll as per which financial statements have to be prepared by all companies.
Answer & explanation
Correct answer: option 2
Every company registered under The Companies Act 2013 shall prepare its balance sheet, statement of profit and loss and notes to account thereto in accordance with the manner prescribed in the revised Schedule III to the Companies Act, 2013 to harmonise the disclosure requirement with the accounting standards and to converge with new reforms.