What is the primary reason for harmonizing the disclosure requirements with accounting standards and converging with new reforms?

To improve transparency and comparability of financial information

Financial statements serve a crucial role in both external reporting and meeting internal management needs. The two key statements included in external reporting are the balance sheet and the statement of profit and loss. These statements provide insights into a company's financial position, profitability, and performance. Additionally, understanding movements of funds and changes in the financial position is essential for decision-making, which is facilitated by the preparation of a cash flow statement. As per The Companies Act 2013, all registered companies must prepare their balance sheet, statement of profit and loss, and notes to accounts in compliance with the revised Schedule III. This harmonizes the disclosure requirements with accounting standards and aligns with new reforms, ensuring transparency and convergence with the latest financial reporting practices. These financial statements collectively offer valuable information for various stakeholders, enabling them to make informed decisions and evaluate the company's financial health.