There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: Financial statements of a company are prepared in the form prescribed in Schedule III of the Companies Act 2013.
Reasoning: Section 129 of the Companies Act 2013 prescribes Schedule III as per which financial statements have to be prepared by all the 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.
Section 129 of the Companies Act, 2013 lays down that the financial statements shall give a true and fair view of the state of affairs of the Company or Companies comply with the Accounting Standards and the format of those financial statements shall be as per Schedule III of Companies Act, 2013.