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The Indian Accounting Standards (Ind AS) Schedule III serves as a comprehensive framework for the preparation and presentation of financial statements in India. Under Schedule III, entities are required to comply with specific presentation and disclosure requirements for various elements of their financial statements, including equity share capital. Equity share capital represents the ownership stake of shareholders in a company and plays a vital role in understanding the financial position and performance of an entity.
This checklist focuses on the presentation and disclosure requirements related to equity share capital as prescribed by Ind AS Schedule III. By adhering to these requirements, entities can ensure transparency, comparability, and meaningful communication of financial information to stakeholders, such as investors, creditors, and regulators. Proper presentation and disclosure of equity share capital provide insights into the rights, obligations, and changes in ownership interests of shareholders, contributing to a more accurate understanding of an entity’s financial health. The presentation & disclosure of equity capital plays a vital role in providing transparency & understanding the ownership structure of the entity. This checklist outlines the requirements for presenting equity share capital in financial statements according to Ind AS Schedule III.
I. Whether the company has disclosed Equity Share Capital and Other Equity on the face of the balance sheet
II. Whether the company has provided the reconciliation for current/previous reporting periods for the ‘Equity Share Capital’ portion under the Statement of Changes in Equity in the following format:
a) Balance at the beginning of the current/previous reporting period
b) Changes in Equity Share Capital due to prior period errors
c) Restated balance at the beginning of the current/previous reporting period
d) Changes in equity share capital during the current/previous year
e) Balance at the end of the current/previous reporting period.
III. Whether the company has provided the reconciliation for current/previous reporting periods for the ‘Other Equity’ under the Statement of Changes in Equity as a part of one single statement:
a) Share application money pending allotment
b) Equity component of compound financial instruments
c) Reserves and Surplus
d) Others
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