The correct answer is option 3- Trade Receivables and Trade Payables.
The important features of the presentation of the balance sheet:
* Applicability: The presentation guidelines apply to all Indian companies that prepare financial statements in accordance with Schedule III to the Companies Act, 2013.
* Exemptions: Insurance or Banking companies and companies for which a specific form of balance sheet or income statement is specified under any other Act are not bound by these presentation guidelines.
* Primacy of Accounting Standards: In case of any conflict, accounting standards take precedence over Schedule III of the Companies Act, 2013.
* Mandatory Disclosure: Essential and mandatory disclosures must be made either on the face of the financial statements or in the accompanying notes.
* Harmonization with Accounting Standards: The terms used in the revised Schedule III will carry the meanings as defined by the applicable accounting standards.
* Striking a Balance: A balance needs to be maintained between providing excessive details that may not be helpful to users of financial statements and ensuring the inclusion of crucial information.
* Classification of Assets and Liabilities: The balance sheet should segregate assets and liabilities into current and non-current categories to aid in better financial analysis and decision-making.
* Rounding off: Companies are required to follow mandatory rounding off requirements for presenting numerical values in the financial statements.
* Presentation Format: The revised Schedule III prescribes the use of a vertical format for presenting financial statements.
Debit Balance Disclosure: In the statement of profit and loss, if there is a debit balance, it should be disclosed as a negative figure under the head "Surplus."
* Share Application Money: Mandatory disclosure is required for share application money pending allotment, providing transparency regarding the company's pending share issuances.
* Terminology Update: The terms "Sundry Debtors" and "Sundry Creditors" have been replaced with "Trade Receivables" and "Trade Payables," respectively, in alignment with accounting standard terminology. |
