FINANCIAL REPORTING OF EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY

Authors

  • DR ADITYA P. TRIPATHI DR. NOOPUR AGRAWAL Assistant Professor   Department of Commerce-SLC(E)      University of Delhi

Keywords:

Abstract

Section 135 of Companies Act 2013 mandates that all  companies having  a net worth  of Rs. 500 crore or more, or a turnover of  Rs. 1000 crore or more or a net profit of Rs. 5 crore or more during any financial  year are required to constitute a CSR committee of the Board consisting of  three or more directors , out of which at least one director should be an independent director. Such companies are required to spend in every financial year, at least 2% of their average net profits during the immediately preceding three financial years in pursuance to its Corporate Social Responsibility (CSR) Policy. 

This article makes an attempt to provide an understanding on Reporting of expenditure on CSR  by the companies operating in India in pursuant to the provisions of Companies Act 2013 and the detailed guidance note issued by The Institute of Chartered Accountants of India in this regard. 

References

Companies Act 2013, www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf accessed online on September 16, 2016.

Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities,GN (A) 34, Issued by the Institute of Chartered Accountants of India, New Delhi.

Published

2016-12-31

Issue

Vol. 6 No. 1 (2016): DECEMBER 2016

Section

Articles

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