CS Executive Corporate Accounting Amendment December 2025

Corporate Accounting Amendment introduces some major new rules and updates in the company accounting. These changes are particularly important for students preparing for the CS Executive in the December 2025 attempt. The updates primarily address lease accounting, insurance contracts, share capital, share buy-backs, and debenture accounting. Below, we’ll break down these changes in a simple manner and make it easier to understand for the students.

Enroll Now for Company Secretary Courses

What is the Corporate Accounting Amendment?

Corporate Accounting Amendment refers to the new changes and revisions to the guidelines that businesses have to stick to when drafting their financial records. The government or official groups like the Ministry of Corporate Affairs make these changes. They aim to ensure all companies present their financial data in a consistent and more transparent manner. These updates will enhance people’s confidence in company reports and also help students to understand the right technique for accounting tests.

Corporate Accounting Amendment Changes

This section of the article outlines every significant alteration implemented through the Corporate Accounting Amendment. These alterations aim to enhance the way businesses maintain and present their financial documentation

Lease Accounting - Ind AS 116

A significant amendment in Corporate Accounting is Ind AS 116. It discusses how businesses ought to manage lease transactions. A lease occurs when a business uses an asset, such as a building or equipment, for a specific duration without owning it. Ind AS 116 explains how to present this in the organization’s financial statements.

This guideline assists firms in accurately presenting the lease. It describes when and how to document it, how to assess it, and how to present it in financial statements. The identical approach should be applied to all comparable lease agreements

Insurance Contracts - Ind AS 117

Another Corporate Accounting Amendment is Ind AS 117. Earlier, this rule was only for insurance companies. Now, it is for all companies that deal with insurance contracts.

This rule helps in showing the effect of insurance contracts clearly. It makes sure all companies follow the same method. The Ministry of Corporate Affairs (MCA) has made this rule official from August and September 2024.

Share Buy-Back and Capital Changes

Share buy-back means a company buys its own shares from its shareholders. The Corporate Accounting Amendment explains how to record this process properly.

If a company uses its free reserves or sells new shares to buy back the old ones, there are some rules to follow. A company must create a Capital Redemption Reserve (CRR). This helps protect the interests of people who gave money to the company.

Sometimes, companies also give bonus shares or preference shares during this process. Bonus shares are given free to existing shareholders. Preference shares give fixed returns. Both help in managing the company's capital.

Debenture Accounting

Debentures are like loans that companies take from people. They promise to return the money with interest. The Corporate Accounting Amendment has also made changes in how debentures are handled.

Companies need to create a Debenture Redemption Reserve (DRR). This is a fund kept to repay the money. They also need to invest in something called Debenture Redemption Investment (DRRI).

Earlier, the interest earned from DRRI was added to a sinking fund. Now, it is shown in the Profit & Loss account. This makes the records cleaner and more modern.

Use of Practical Examples

The lecture by Gabbar Sir showed real examples with numbers. These helped in understanding how to make journal entries and balance sheet changes for all the above topics.

Students should focus on these examples. It will help them understand the Corporate Accounting Amendment better. It will also make them ready for exam questions.

Why these Corporate Accounting Amendments are important?

The amendment to corporate accounting holds significant importance. It assists businesses in presenting accurate and honest accounts. It also aids individuals who invest in businesses to have confidence in their figures.

For students, these modifications are included in the CA Executive exam. Understanding them thoroughly is essential for composing the correct responses. The Ministry of Corporate Affairs continues to implement changes to enhance the accounting practices of companies

If you are a student or someone interested in company accounts, you have to study the corporate Accounting amendment. These changes are not simply guidelines. They're tools to make accounting higher and more honest. Keep studying updates. strive out the examples. And stay prepared for extra changes.

Join PW CS Online Courses and build a strong foundation in corporate laws and governance with structured learning and dedicated support.