Ind AS Schedule III explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Three notifications built the current position — 2014 for Schedule III itself, 2016 for the Ind AS format, and 24 March 2021 for the additional disclosures that now dominate the note.
The three notifications
| Notification | Effect | Applies from |
|---|---|---|
| S.O. 902(E), 26 March 2014 | Schedule III applies to financial statements generally | Financial year commencing on or after 1 April 2014 |
| G.S.R. 404(E), 6 April 2016 | Adds a format for companies preparing statements under the Companies Ind AS Rules — this is Division II | On notification |
| Notification of 24 March 2021 | Adds certain additional presentation and disclosure requirements and changes some existing ones | Financial year commencing on or after 1 April 2021 |
Every company that prepares financial statements under the Companies Ind AS Rules — voluntarily or mandatorily — should apply Ind AS Schedule III and this guidance note, and additionally consider the Act, other statutes, and notifications and circulars issued by various regulators.
Comparatives
Corresponding amounts for the immediately preceding period must be disclosed including in the Notes to Accounts, with one exception: the first financial statements laid before the company after incorporation.
So financial statements for FY 2021-22 carry comparatives for FY 2020-21 — including for every one of the new 24 March 2021 disclosures, which is the practical consequence most preparers meet first.
Under Ind AS 101, a company's first Ind AS financial statements must include at least three balance sheets, two statements of profit and loss, two statements of cash flows and two statements of changes in equity, with related notes.
Three balance sheets, not two — the additional one is the opening balance sheet at the date of transition.
Note also what the guidance note expressly does not cover: the presentation aspects of the reconciliations required as part of a company's first Ind AS financial statements. Those are governed by Ind AS 101 itself, and a preparer looking here for guidance on transition reconciliations will not find it.
Interim financial statements
Ind AS 34 governs, and the guidance note quotes it directly:
- Complete set published in an interim report — form and content shall conform to Ind AS 1 for a complete set of financial statements.
- Condensed set — shall include at a minimum each of the headings and subtotals in the most recent annual financial statements plus selected explanatory notes, with additional line items or notes included if their omission would make the condensed statements misleading.
Where a company presents condensed interim statements, its format should also conform to that used in the most recent annual financial statements — i.e. Ind AS Schedule III — except in interim periods falling in the first Ind AS reporting period.
Listed entities
They shall follow guidelines issued by SEBI by way of circulars prescribing formats for publishing financial results (quarterly, half-yearly and annual), which are themselves guided by the relevant Ind AS and Ind AS Schedule III provisions and may make suitable modifications, as applicable.
What the structure looks like
- General Instructions for preparation of financial statements of a company required to comply with Ind AS;
- Part I — Form of Balance Sheet and Statement of Changes in Equity;
- Part I Notes — general instructions for preparation of the Balance Sheet;
- Part II — Form of Statement of Profit and Loss;
- Part II Notes — general instructions for the Statement of Profit and Loss; and
- Part III — general instructions for preparation of Consolidated Financial Statements.
Common mistakes
- Presenting the new 2021 disclosures without prior-year comparatives.
- Assuming Division I guidance covers an Ind AS company.
- Using the annual Schedule III format for condensed interim statements in the first Ind AS year.
- Treating the SEBI results format as a substitute for Ind AS Schedule III in the annual accounts.