Which of the following statement is true?

Statement 1: Disclosure on the face of the financial statements or in the notes is essential and mandatory.
Statement 2: Accounting standards shall prevail over Schedule III of the Companies Act, 2013.

Both are true

The correct answer is option 3- Both are true.

Important Features of Presentation of financial statements of a company are as follows-

1. It applies to all Indian companies preparing financial statements as per Schedule III to the Companies Act, 2013.

2. It does not apply to (i) Insurance or Banking Company, (ii) Company for which a form of balance sheet or income statement is specified under any other Act.

3. Accounting standards shall prevail over Schedule III of the Companies Act, 2013.

4. Disclosure on the face of the financial statements or in the notes are essential and mandatory.

5. Terms in the revised Schedule III will carry the meaning as defined by the applicable accounting standards.

6. Balance to be maintained between excessive details that may not assist users of financial statements and not providing important information.

7. Current and non-current bifurcation of assets and liabilities is applicable.