Presentation of Equity in the preparation of the Financial Statement
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- Last Updated on 8 February, 2022
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Ind AS Schedule III , Part I – Format of Balance Sheet prescribes that the following line items are to be disclosed on the face of the Balance Sheet in relation to Equity:
1. Equity Share Capital
2. Instruments entirely Equity in nature
3. Other Equity
It also includes a Statement of Changes in Equity (SOCE) comprising Equity Share Capital and Other Equity.
Presentation and Disclosures for both of these are included in Note 6(D) to General Instructions for Preparation of Balance Sheet. In SOCE reconciliation for current/previous reporting periods shall be prepared under the heading ‘Equity Share Capital’.
Also, in the Statement of Changes in Equity, the reconciliation for instruments entirely equity in nature should be presented in the same manner for the following:
(a) Compulsory Convertible preference share
(b) Compulsory Convertible debentures
(c) Any other instrument entirely equity in nature
Under the head ‘Other Equity’ of SOCE, a reconciliation as a part of one single statement, of all items other than equity share capital, that are attributable to the holders of equity instruments of an entity shall be provided.
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