Taxonomy Related FAQs

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In the cost audit report, as per the notified taxonomy, details in respect of only the following types of transactions are to be reported. Therefore, details of all the remaining financial transactions with the related parties are not to be reported in the Cost Audit Report.
1. Sale or Purchase of Goods
2. Services Received or Rendered

An individual practising cost accountant needs to fill in as “Sole Proprietor” Option under the category of Cost Accountants or of the Cost Auditors. The category of Sole Proprietor includes individuals also.

Cost Audit Reports can be filed for the company only after filing Form 23C and ensuring that the same is approved.

Filing of Form 23D has been made mandatory for appointments of cost auditors from the financial year commencing on or after April 1, 2011. Since earlier years’ reports (prior to 2011-12) are also required to be filed in the XBRL format for which no Form 23D was applicable, hence filing of Form 23D is not applicable for filing such cost audit reports.

If the company has filed multiple Form 23C against the same cost auditor either for the same or for different products/units, then the SRN numbers of all such Form 23C and the SRN numbers of all the corresponding Form 23D filed by the cost auditor(s) are required to be provided in the fields provided for the same in the taxonomy. Such cases would arise in respect of Form 23C filed before the new Form 23C was introduced enabling appointment of a cost auditor for multiple products under multiple cost audit orders.

If a company was already covered under erstwhile Cost Accounting Records Rules, previous year figures are required to be given in the cost audit report even in the first year of cost audit. Suitable disclosure may be made by the cost auditor that the previous year figures are as provided by the management.
In case some of the products of the company was under cost accounting records/cost audit prior to 2011-12 and additional products have come under cost accounting records and cost audit from 2011-12, then previous year figures in respect of such products that were under cost accounting records prior to 2011-12 is required to be provided. The taxonomy provides reporting of previous year figures according to product group and the same should be suitably disclosed in Para 3.
However, if both cost accounting records rules and cost audit becomes simultaneously applicable for the first time on a company, then disclosure of previous year figures is optional.
Any non-disclosure of previous year figures must be supported with reasoned justification.


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