LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Classification as per schedule vi

CA sonal (Job) (128 Points)

07 January 2013

Hello,

Happy New Year to all !

After reading Schedule VI I have some doubts.They are:-

If normal operating cycle is of 6 months. there is an item in inventory which is laying for 2 years then where to classify- under current or non current asset?

Investments trade & non trade how to classify?

whether we have to clasify debtors more than 6 months old & others as per new schedule VI ?

Further when DTC & GST will become applicable, what is the current status ?

Its urgent ! plz reply. Thank you in anticipation.!

Regards,

Sonal Kale.

Reply
Follow
Share

4 Replies

CA Vanamala Phani Kumar (Proprietor of M/s Vanamala and Co) (972 Points)
Replied 08 January 2013

Current Status doesn't exceed 1 year....!!

1 Like

CA sonal (Job) (128 Points)
Replied 08 January 2013

Thank You.

Whether it means if operating cycle is more than 1 year then inventory more than 1 year will be classified in non current asset. ? or only if operating cycle is less than 6 months then inventory( raw material,WIP, finished goods) which is 1 year old will be classified in current asset..?

regards

CA Vanamala Phani Kumar (Proprietor of M/s Vanamala and Co) (972 Points)
Replied 08 January 2013

An operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have duration of 12 months.