First Notes


First Notes is our ‘hot, off the press’ update that aims to provide a very timely heads up on key accounting and regulatory developments that affect reporting for entities in India. It is one more way for us to connect with you, in addition to the monthly Accounting and Auditing Update.

The MCA rationalises norms relating to consolidated financial statements and internal financial controls system

The Companies Act, 2013 was largely operationalised from 1 April 2014. The Ministry of Corporate Affairs (MCA) vide notifications dated 14 October 2014 has amended/clarified provisions relating to:

• the preparation of consolidated financial statements (CFS) by an intermediate wholly-owned subsidiary – amended to provide an exemption

• the preparation of CFS by companies having just an associate or a joint venture – amended to grant a transition period

• reporting on the internal financial control systems by auditors, mandatory for financial years commencing on or after 1 April 2015 – amended to grant a transition period

• the Schedule III-related disclosures made in stand-alone financial statements which are not to be repeated in CFS.

Our First Notes summarises these amendments.

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