CUET Preparation Today
Which among the following is NOT the feature of the Presentation of the Financial Statement? |
Accounting standards shall prevail over Schedule III of the Companies Act, 2013. Rounding off requirements is mandatory. Disclosure on the face of the financial statements or in the notes is not essential or mandatory. Current and non-current bifurcation of assets and liabilities is applicable. |
Disclosure on the face of the financial statements or in the notes is not essential or mandatory. |
The correct answer is option 3: Disclosure on the face of the financial statements or in the notes is not essential or mandatory. This statement is the opposite of the truth. According to the Companies Act, 2013 and applicable Accounting Standards, providing sufficient disclosures in the financial statements or their accompanying notes is a mandatory and fundamental requirement. These disclosures provide crucial information about the company's financial position, performance, and cash flows to all stakeholders. |
