Revised schedule vi

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Revised schedule vi

  1. 1. Revised Schedule VI
  2. 2. Need of Revision
  3. 3. •Classification in old schedule VI was not in line with the disclosurerequirements under AS. The disclosure requirements of old schedule VI onthe face of balance sheet were insufficient.For example: as per AS 22 deferred tax asset/liabilities should be disclosedunder separate heading in the balance sheet, separately from currentasset/liabilities i.e. under “non current asset” or “non current liabilities”. Thisclassification was not provided in old schedule VI
  4. 4. •No specific format for Profit and Loss account under old schedule VI•Measurement principle under old schedule VI was not in line withAccounting StandardsFor example: as per AS 11 any exchange difference in foreign currencytranslation is to be charged/recognized in Profit and Loss account, whereasas per old schedule VI such exchange difference should be capitalized.•Old schedule VI was not compatible with International AccountingStandards.
  5. 5. Salient Features ofRevised Schedule VI
  6. 6. Assets and Liabilities
  7. 7. •All assets and liabilities are classified into current and non-current.Classification of liabilities into secured and unsecured heading as given inold schedule VI is now to be given in notes to Accounts as a line item•Old schedule VI Revised schedule VI Sundry creditors Trade Payables Sundry debtors Trade Receivables•Trade Payables, Trade Receivables and provisions are further classified aslong term (non-current) item and short term (current) item.
  8. 8. •Trade Receivables will include only the amount due on account of goodssold or services rendered in normal course of business. Other receivableswill be shown under the heading “Other current assets”.•Trade Payables will include only the amount due on account of goods soldor services received in normal course of business. Other payables will beshown under the heading “Other current liabilities”.
  9. 9. Equity
  10. 10. •All details regarding share capital to be shown in the notes to accounts.•Loss from Profit and Loss account will be shown under the head Reserveand surplus as a negative figure.•Balance of reserve and surplus may be in negative.
  11. 11. Profit and Loss Account
  12. 12. •Any item of income or expense which exceeds one percent of the revenuefrom operation or Rs. 100000 whichever is less is to be disclosed separately.•Net gain or loss on foreign currency transaction/translation related to financecost and net gain or loss on others should be separately disclosed.•The requirements of disclosures in respect of quantity of inventories isdispensed with.
  13. 13. Unit of Measurement
  14. 14. •For companies having turnover of less than 100 crore rupees, the figuresappearing in the financial statements may be rounded off to nearesthundreds, thousands, lakhs or millions, or decimals thereof.•For companies having turnover of more than 100 crore rupees, the figuresappearing in the financial statements may be rounded off to nearest lakhs,millions, or crores or decimals thereof.•Once a unit of measurement is used, it should be used uniformly in thefinancial statements.
  15. 15. IF YOU HAVE ANY SUGGESTION, OPINION OR FEEDBACK PLEASE FEEL FREE TO WRITE US AT roshankumar.2007@rediffmail.com
  16. 16. Roshankumar S Pimpalkar

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