1. Profit Prior to Incorporation…………………………………………………… 7
1.1 Introduction
1.2 Meaning of Profit or Loss Prior to Incorporation
1.3 Treatment of Loss Prior to Incorporation
1.4 Use of Pre-incorporation Profits
1.5 Cut- off dates for pre and post incorporation profits
1.6 Important Concepts
1.7 Basis of Apportionment
1.8 Format of Statement of Profit Prior to and Post Incorporation
1.9 Illustrations
● Exercise
2. Internal Reconstruction………………………………………………………… 52
2.1 Introduction & Background
2.2 Meaning & Concepts of Restructuring, Internal Reconstruction &
External Reconstruction.
2.3 Need / Requisite of Internal Reconstruction
2.4 Types or Scheme of Capital Restructuring or Internal Reconstruction
– Capital reduction, alteration of share capital, surrendered of
share capital, variation of Shareholders’ Rights, Arrangement or
Compromise, and Dissenting Shareholders
2.5 Conditions/Provisions regarding Internal Reconstruction.
2.6 Factors considered at the time of internal construction or capital
restructuring.
2.7 Steps for Reconstruction.
2.8 Difference between Internal Reconstruction and External
Reconstruction.
2.9 Accounting Treatment for the Internal Reconstruction.
2.10 Solved problems
● Exercise
3. Financial Statements of the Company………………………………….. 130
3.1 Introduction
3.2 Preparation of Financial Statement of the Company
3.3 Financial Statement and Types of Financial Statement:
3.3.1 Meaning of Financial Statement
3.3.2 Types of Financial Statement
3.4 Provisions as to Preparation of Financial Statement:
3.4.1 Basic Provision as per Section 129
3.4.2 Authentication of Financial Statements
3.4.3 Auditor’s Report & Financial Year
3.4.4 Companies Act 2013 and Accounting Standards
3.4.5 National Financial Reporting Authority (NFRA)
3.4.6 Board of Directors’ Report (Section 134)
3.4.7 Directors’ Responsibility Statement (Section 134(5))
3.4.8 Penalty
3.5 Ind AS-1: Presentation of Financial Statements and Schedule -III
3.6 Company Final Account
3.7 Applicability of Schedule III
3.8 Accounting Treatment
3.9 Illustrations
● Exercise
4. Accounting for Liquidation of Companies……………………………. 259
3.1 Meaning of Liquidation or Winding Up
4.2 Mode of Liquidation or Winding up
4.3 Consequences of Liquidation or Winding up
4.4 Preferential Payments/Order of Payments
4.5 Liquidator’s power and duties
4.6 Liquidator’s Final Statement of Account
4.7 Receiver for debenture Holders
4.8 List ‘B’ Contributors
4.9 Statement of Affairs and List -H: Deficiency or Surplus Account
4.10 Illustrations
● Exercise