"The accounting treatment of an issue of sweat equity shares is different than the public offer of shares." Elucidate briefly. Is there any requirement of Auditor's certificate after issue of sweat equity shares? When su

Accounting Treatment: Where the sweat equity shares are issued for a non-cash consideration, such non cash consideration shall be treated in the following manner in the books of account of the company: where the non-cash consideration takes the form of a depreciable or amortizable asset, it shall be carried to the balance sheet of the company in accordance with the relevant accounting standards; or where the above clause is not applicable, it shall be expensed as provided in the relevant accounting standards. Placing of Auditors Certificate before Annual General Meeting In the General meeting subsequent to the issue of sweat equity, the Board of Directors shall place before the shareholders, a certificate from the auditors of the company that the issue of sweat equity shares has been made in accordance with the SEBI Regulations and in accordance with the resolution passed by the company authorizing the issue of such Sweat Equity Shares. Ceiling of Managerial Remuneration The amount of sweat equity shares issued shall be treated as part of managerial remuneration for the purpose of sections 197 of the Companies Act, 2013, if the following conditions are fulfilled: the Sweat Equity shares are issued to any director or manager; and they are issued for non-cash consideration, which does not take the form of an asset which can be carried to the balance sheet of the company in accordance with the relevant accounting standards.