{"id":592,"date":"2021-08-11T06:54:55","date_gmt":"2021-08-11T06:54:55","guid":{"rendered":"http:\/\/www.rnm.in\/blog\/?p=592"},"modified":"2025-01-30T10:55:43","modified_gmt":"2025-01-30T10:55:43","slug":"mca-amends-schedule-iii-of-companies-act-on-disclosure-norms-in-financial-statements","status":"publish","type":"post","link":"https:\/\/www.rnm.in\/blog\/mca-amends-schedule-iii-of-companies-act-on-disclosure-norms-in-financial-statements\/","title":{"rendered":"MCA amends Schedule III of Companies Act on disclosure norms in financial statements"},"content":{"rendered":"\n<p>In order to bring in greater\ntransparency in reporting of financial statements, the Ministry of Corporate\nAffairs (MCA) vide notification dated 24.03.2021 has amended the Schedule III\nto the Companies Act, 2013 effective from <strong>01st\nApril, 2021<\/strong> to mandate various disclosures by companies in their financial\nstatements. This was stated by Union Minister of State for Corporate Affairs\nShri Rao Inderjit Singh in a written reply to a question in Rajya Sabha.<\/p>\n\n\n\n<p>Two New Disclosure requirements inserted in Schedule-III<\/p>\n\n\n\n<p><strong>1. Details of Crypto\nCurrency or Virtual Currency<\/strong><\/p>\n\n\n\n<p>Where the Company has traded or invested in Crypto currency\nor Virtual Currency during the financial year, the following shall be\ndisclosed:-<\/p>\n\n\n\n<p>a. profit or loss on transactions involving Crypto currency\nor Virtual Currency<\/p>\n\n\n\n<p>b. amount of currency held as at the reporting date,<\/p>\n\n\n\n<p>c. deposits or advances from any person for the purpose of\ntrading or investing in Crypto Currency\/virtual currency.<\/p>\n\n\n\n<p>2. <strong>Details of Corporate\nSocial Responsibility (CSR)<\/strong><\/p>\n\n\n\n<p>Where the company covered under section 135 of the companies\nact, the following shall be disclosed with regard to CSR activities:-<\/p>\n\n\n\n<p>a. amount required to be spent by the company during the\nyear,<\/p>\n\n\n\n<p>b. amount of expenditure incurred,<\/p>\n\n\n\n<p>c. shortfall at the end of the year,<\/p>\n\n\n\n<p>d. total of previous years shortfall,<\/p>\n\n\n\n<p>e. reason for shortfall,<\/p>\n\n\n\n<p>f. nature of CSR activities,<\/p>\n\n\n\n<p>g. details of related party transactions, contribution to a trust controlled by the company in relation to CSR expenditure as per relevant Accounting Standard,<\/p>\n\n\n\n<p>h. where a provision is made with respect to a liability\nincurred by entering into a contractual obligation, the movements in the\nprovision during the year should be shown separately.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In order to bring in greater transparency in reporting of financial statements, the Ministry of Corporate Affairs (MCA) vide notification dated 24.03.2021 has amended the Schedule III to the Companies Act, 2013 effective from 01st April, 2021 to mandate various disclosures by companies in their financial statements. This was stated by Union Minister of State for Corporate Affairs Shri Rao [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":593,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[17,14],"tags":[69,27],"class_list":["post-592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-assurance","category-general","tag-mca","tag-ministry-of-corporate-affairs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MCA amends Schedule III of Companies Act for better disclosure<\/title>\n<meta name=\"description\" content=\"Ministry of Corporate Affairs amends Schedule III of the Companies Act to improve disclosure norms in financial statements.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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