Site navigation

Under section 129(5) of the Companies Act, 2013, what must a company disclose when its annual accounts do not comply with the applicable accounting standards?

Question and options

Under section 129(5) of the Companies Act, 2013, what must a company disclose when its annual accounts do not comply with the applicable accounting standards?

  1. The deviation, the Central Government's approval and its reference

  2. The deviation, the auditor's consent and the audit committee's view

  3. The deviation, the Board resolution approving it and its date

  4. The deviation, the reasons for it and its financial effects

Answer and explanation

Correct answer: D - The deviation, the reasons for it and its financial effects

Section 129(5) of the Companies Act, 2013 requires a company whose financial statements depart from the accounting standards to disclose the deviation, the reasons for it and the financial effects, if any, arising from it. The section does not make the deviation depend on the auditor's consent or on any Board or Government approval.

Practice for these exams

Related exam syllabi

More solved explanations in Accounts, audit & CSR