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Under the Companies Act 2013, the FORMAT AND CONTENT of corporate financial statements is governed by:
ASchedule II to the Companies Act 2013
BThe accounting policies framework issued by the entity's auditor
CCompanies' individual Memorandum of Association
DSchedule III to the Companies Act 2013 — which prescribes the VERTICAL format and minimum line-item disclosures (not the horizontal format)
Answer & Solution
Correct answer: D. Schedule III to the Companies Act 2013 — which prescribes the VERTICAL format and minimum line-item disclosures (not the horizontal format)
Schedule III to the Companies Act 2013 — prescribes the vertical balance sheet format and minimum disclosure on the face of the balance sheet and P&L. It allows additional line-items where relevant to the entity. Schedule II governs DEPRECIATION (useful lives of PPE), a different topic.
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