Revised schedule VI

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Revised schedule VI

  1. 1. Mar 10, 2012 REVISED SCHEDULE VI OF THE COMPANIES ACT, 19561 A Comparison with Old Schedule VI
  2. 2. EFFECTIVE DATE Mar 10, 2012 Financial Year commencing on or after 01- April-2011 2
  3. 3. (REVISED SCHEDULE VI) V/S (ACT& AS) Mar 10, 2012 ‘Act & AS’ will prevail Provisions given in the Companies Act, 1956 & AS specified by the Accounting Standard Rules of 2006, has precedence over Revised Schedule VI to the extent the disclosure requirements / treatment of the revised schedule VI is not consistent with the provisions or the AS. Disclosure as per Revised Schedule VI is in addition to other accounting / disclosure requirements. 3
  4. 4. CURRENT AND NON-CURRENTASSET Mar 10, 2012Current(a) it is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle;(b) it is held primarily for the purpose of being traded;(c) it is expected to be realized within twelve months after the reporting date; or(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.Non-CurrentAll other assets shall be classified as non-current.” 4
  5. 5. CURRENT AND NON-CURRENTLIABILITY Mar 10, 2012Current(a) it is expected to be settled in the company’s normal operating cycle;(b) it is held primarily for the purpose of being traded(c ) it is due to be settled within twelve months after the reporting date; or(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.Non-Current 5All other liabilities shall be classified as non-current
  6. 6. Mar 10, 2012NOMENCLATUREEQUITY AND LIABILITIES 6
  7. 7. FORMAT OF BALANCE SHEET Mar 10, 2012Old Schedule VI Revised Schedule VIHorizontal or Vertical Vertical Only 7
  8. 8. EQUITY Mar 10, 2012Old Schedule VI Revised Schedule VIEarlier no separate disclosure on Money received against sharethe face of balance sheet warrantsEarlier no separate disclosure on Share application money pendingthe face of balance sheet allotment 8
  9. 9. DEPOSIT LIABILITY Mar 10, 2012Old Schedule VI Revised Schedule VIDeposit liability – no distinction To be disclosed under the long-between long term and short term borrowings unless it hasterm. current maturity in which case to be grouped under short term borrowings. 9
  10. 10. FIXED ASSETS Mar 10, 2012Old Schedule VI Revised Schedule VINo bifurcation required into To be shown under non-currenttangible & intangible assets. assets and it has to be bifurcated in to Tangible & intangible assets. Tangible Intangible CWIP Intangible under development 10
  11. 11. BORROWINGS Mar 10, 2012Old Schedule VI Revised Schedule VIShort term & long term Long term borrowings to beborrowings are grouped together shown under non-currentunder the head Loan funds sub- liabilities and short termhead Secured / Unsecured borrowings to be shown under current liabilities with separate disclosure of secured / unsecured loans. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be 11 separately specified
  12. 12. FINANCE LEASE OBLIGATION Mar 10, 2012Old Schedule VI Revised Schedule VIIncluded in current liabilities Included in Non-current liabilities. However, short term maturities of Fin Lease obligation to be grouped under current liabilities only. 12
  13. 13. DEPOSIT ASSET Mar 10, 2012Old Schedule VI Revised Schedule VILease deposits are part of loans Lease deposits to be disclosed as& advances long term loans & advances under the head non-current assets unless they are of current nature 13
  14. 14. INVESTMENTS Mar 10, 2012Old Schedule VI Revised Schedule VIBoth current & non-current Current and non-currentinvestments to be disclosed investments are to be disclosedunder the head investments separately under current assets & non-current assets respectively. Investments carried at other than cost should be separately disclosed and the basis of its valuation to be disclosed 14
  15. 15. LOANS & ADVANCES Mar 10, 2012Old Schedule VI Revised Schedule VILoans & Advance are disclosed Loans & Advances to be brokenalong with current assets up in long term & short term and to be disclosed under non-current & current assets respectively. Loans & Advance to related parties to be disclosed separately. 15
  16. 16. NET WORKING CAPITAL Mar 10, 2012Old Schedule VI Revised Schedule VICurrent assets & Liabilities are Assets & Liabilities are to beNetted off and Net Working bifurcated in to current & Non-Capital amount is shown current and to be shown separately. Hence, net working capital will not be appearing in Balance sheet. 16
  17. 17. DEFERRED TAX ASSETS /LIABILITIES Mar 10, 2012Old Schedule VI Revised Schedule VIDeferred Tax assets / liabilities Deferred Tax assets / liabilitiesto be disclosed separately to be disclosed under non-current assets / liabilities as the case may be. Not to be disclosed as current. 17
  18. 18. CASH & BANK BALANCES Mar 10, 2012Old Schedule VI Revised Schedule VIBank balance to be bifurcated in - Bank balances in relation toscheduled banks & others earmarked balances, -held as margin money against borrowings, -deposits with more than 12 months maturity, each of the above to be shown separately. 18
  19. 19. LOSS Mar 10, 2012Old Schedule VI Revised Schedule VIDebit balance in profit and loss To be shown as negative figureaccount to be shown under the under the head Surplus.head Miscellaneous expenditure Therefore, reserve & surplus& losses. balance can go negative. 19
  20. 20. SUNDRY CREDITORS Mar 10, 2012Old Schedule VI Revised Schedule VICreditors to be broken up in to No mention of micro & smallmicro & small suppliers and enterprise disclosure.other creditors. However, it is continued to be disclosed under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. 20
  21. 21. OTHER CURRENT LIABILITIES Mar 10, 2012Old Schedule VI Revised Schedule VICurrent maturities of long term Current maturities of long termdebt need not be disclosed on the debt to be disclosed under otherface separately. current liabilities.Current maturities of finance Current maturities of financelease obligation need not be lease obligation to be discloseddisclosed on the face separately. hereunder separately. 21
  22. 22. Mar 10, 2012NOMENCLATURE“STATEMENT OF PROFIT AND LOSS” 22
  23. 23. SEPARATE LINE ITEM Mar 10, 2012Old Schedule VI Revised Schedule VIAny item under which expense Any item of income / expenseexceeds one per cent of the total which exceeds one per cent of therevenue of the company or Rs. revenue from operations or Rs.5,000 which ever is higher; shall 1,00,000, which ever is higher; tobe disclosed separately be disclosed separately 23
  24. 24. REVENUES Mar 10, 2012Old Schedule VI Revised Schedule VISales for each class of goods to be Quantitative details are doneseparately shown indicating the away with.quantities of such sales -(Quantitative sales 24
  25. 25. PURCHASES AND CONSUMPTION Mar 10, 2012Old Schedule VI Revised Schedule VIRequired both value and Disclosure of quantitativequantitative disclosure in respect details of goods purchased is noof Raw Materials and traded longer required.goods. However, values to be classified under broad heads.As per ICAI exposure draft on Revised Schedule VI – Quantitativedetails disclosure is not required. 25
  26. 26. EMPLOYEE COMPENSATION Mar 10, 2012Old Schedule VI Revised Schedule VIEarlier not required separately Employee stock option expense to be shown separately 26
  27. 27. FINANCE COST Mar 10, 2012Old Schedule VI Revised Schedule VIInterest Cost • Interest Expenses• Company’s Debentures • Other borrowing costs• On Fixed Loans • Gain / Loss on foreign currency• Paid to Managing Director / translations / transactionsManager (finance cost portion only – forex fluctuation on interest paid in foreign currency) 27
  28. 28. Mar 10, 2012OTHER CHANGES 28
  29. 29. ROUNDING OFF Mar 10, 2012Old Schedule VI Revised Schedule VITurnover of less than Rs. 100 Crs Turnover of less than Rs. 100 Crs- R/off to the nearest Hundreds, - R/off to the nearest Hundreds,thousands or decimal thereof thousands, lakhs or millions or decimal thereofTurnover of Rs. 100 Crs or more Turnover of Rs. 100 Crs or more -but less than Rs. 500 Crs - R/off R/off to the nearest lakhs,to the nearest Hundreds, millions or crores, or decimalthousands, lakhs or millions or thereofdecimal thereofTurnover of Rs. 500 Crs or more -R/off to the nearest Hundreds,thousands, lakhs, millions or 29crores, or decimal thereof
  30. 30. COMPARATIVES Mar 10, 2012 Comparatives has to be compliant with Revised Schedule VI and amounts need to be given for the financial year 2010-11 in the revised Schedule VI format. First set of financials compliant with revised Schedule VI will be for the year 2011-12 30
  31. 31. INTERIM FINANCIAL REPORTING Mar 10, 2012Companies presenting Companies presentingCondensed interim financial Complete set of financialstatements statementsCompany need not comply with Company should comply withRevised Schedule VI Revised Schedule VIrequirements requirements from Financial year 2012-13 and onwards only. 31
  32. 32. AUDITOR’S APPROACH -SUGGESTED Mar 10, 2012 Verify audit evidence which goes to substantiate the expected timelines of realisation of assets or settlement of liabilities to ensure proper bifurcation between current and non-current. Ask the clients in advance to be prepared with the new format requirements with necessary backup / supporting. Make use of tailored procedures / disclosure 32 checklists to ensure complete disclosure.
  33. 33. TAKE AWAY Mar 10, 2012Current and Non-Current 33
  34. 34. Mar 10, 2012 34
  35. 35. Mar 10, 2012 35
  36. 36. Mar 10, 2012 36
  37. 37. Mar 10, 2012 37
  38. 38. Mar 10, 2012 38THANK YOU

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