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New revised balance sheet

Bharat chandan (student) (158 Points)

08 November 2011

In module preliminary expenses is shown as other current asset in revised schedule VI balancesheet
but it does not satisfies the definition of current asset
what will be correct treatment of preliminary expenses, underwriting commission, discount on issue of shares and debentures????????
pls reply soon

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17 Replies

C A kailash vyas (propritor) (48 Points)
Replied 08 November 2011

MY DEAR ASSEST MEANS CASH AND CASH EQUIVALENT ITEMS THOSE ITEMS FROM WHICH WE CAN NOT GENERATE CASH NOT TREATED AS ASSEST WHETHER FIX AND CURRENT .

AS PER COMPANY ACT 1956 HEAVY EXPENDITURE LIKE DISCOUNT ON SHARE AND DEB. ETC TREATED DEFFERRED ASSEST AND SHOWEN IN ASSESET SIDE UNDER MISS. EXP. HEADING

1 Like

Bharat chandan (student) (158 Points)
Replied 10 November 2011

please see new revised balancesheet format there is no head as miscellenious expenditure
and misc exp should be deducted from reserves we cant show that on asset side
waise bhi revised balancesheet me wo head hi nhi he
use other current asset me dala he
aur discount on shares cash equivalent kaise hua????????
to wo current asset nhi ho sakta

P Sreenivasulu (CA Job) (89 Points)
Replied 11 November 2011

PL REF TO GUIDANCE NOTE ON REV SCH VI (DRAFT). AT PAGE 50 IT IS CLEARLY MENTIONED THAT WE CAN DISCLOSE UNAMORTISED PORTION OF SUCH EXPENSES AS UNAMORTISED EXPENSES UNDER THE HEAD 'OTHER CURRENT/NON-CURRENT ASSETS' DEPENDING ON WHETHER THE AMOUNT WILL BE AMORTISED IN THE NEXT 12 MONTHS OR THEREAFTER.

P SREENIVASULU

Mohd. Atiq Qureshi (Student) (40 Points)
Replied 15 November 2011

Preliminary Expenses written off can be disclosed in Exceptional items in P&La/c...

Suggest me....

Bharat chandan (student) (158 Points)
Replied 16 November 2011

are mr mohd. atiq jo amount amortised karte he wo p & l me dikhate he
aur thanks mr. p sreenivasulu aap ka answer acha laga muje aur icai me mene ye question dala tha uska muje ye answer mila k wo log next edition me change kare ge

Dear student, The revised Schedule VI does not contain any specific disclosure requirement for the unamortized portion of expense items such as share issue expenses, ancillary borrowing cost and discount or premium relating to borrowings. The existing Schedule VI required these items to be included under the head “Miscellaneous Expenditure.” AS 16 Borrowing Costs alludes that ancillary borrowing cost and discount or premium relating to borrowings could be amortized over the loan period. Further, share issue expenses, discount on shares, ancillary cost-discount-premium on borrowing, etc., being a special nature item are excluded from the scope of AS 26. Keeping this in view, certain companies have taken a view that it is an acceptable practice to amortize these expenses over the period of benefit, i.e., normally 3 to 5 years. The revised Schedule VI does not deal with any accounting treatment and the same continues to be governed by the respective accounting standards/ practices. Further, the revised Schedule VI is clear that additional line items can be added on the face or in the notes. Keeping this in view, we believe that companies can disclose the unamortized portion of such expenses under the head “other current/ non-current assets”, depending on whether the amount will be amortized in the next 12 months or thereafter. Also if we carefully read the definition of current asset i.e An asset shall be classified as current when it satisfies any of the following criteria: (a)it is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle; here bu consumption, we can interpret that the benefits consumed by an expenditure over the years. On this basis, it will fall under the category of current assets. For preliminary expenses, as per para 56 of AS 26 it should be write off in the year it is incurred. necessary corrections in this regard will be made in the study material in next edition.

Mohd. Atiq Qureshi (Student) (40 Points)
Replied 18 November 2011

Provide me detail view of Revised Schedule VI......

Is notes to account (instead of Schedules) & Notes related to concern e.g. Nature of Business, Accounting Policy or any other need to be disclosed for that Concern?

Mohit Vijayvergiya (Assistant Manager) (21 Points)
Replied 22 December 2011

Hi,

In revised schedule VI all assets and liabilities are shown under current or non current assets and liabilities. How we bifurcate the Advance tax (net of provision if any) in current or non current assets.

As per definition of current assets, An assets shall be classified as current assets, if it is expected to be realised within twelve months after the reporting date than it is a part of current assets otherwise vise-versa.

In Income tax assets nobody can determine or evaluate that Assessment order is passed within the 12 months or after the 12 Months. Or if passed the order than also assessee or AO have a right to appeal the order.

As per my view Income tax assets is current assets. but many of the company are presented in non current assets.

If you need any further clarification / information on the above mentioned please do inform

Please give your opinion ASAP. Thanx in advance.

Best Regards

Mohit Vijayvergiya

jitendrakr (article assistent) (31 Points)
Replied 04 July 2012

Pls forward this answer for this ques

where i show preliminery Expense in Revised sehdule Blance sheet Bcoz not given proper head for this head

jitendrakr

Ca final

SANTANU RANJAN DEV (Sr. Accountant) (25 Points)
Replied 25 July 2012

In Revised Schrdule VI unamortized expenses (preliminery expenses) written off in statement of profit & loss (limit)l

If last year Preliminery Exp .Rs. 112000 + this year addition 450000 = Rs. 562000 total preliminery expenses

SANTANU RANJAN DEV (Sr. Accountant) (25 Points)
Replied 25 July 2012

Originally posted by : SANTANU RANJAN DEV

In Revised Schrdule VI unamortized expenses (preliminery expenses) written off in statement of profit & loss (limit)l

If last year Preliminery Exp .Rs. 112000 + this year addition 450000 = Rs. 562000 total preliminery expenses

Best Regards,

Santanu Ranjan Devburman

Bharat chandan (student) (158 Points)
Replied 27 July 2012

in revised schedule vi balance sheet priliminary expenses is shown under the head RESERVES AND SURPLUS

there ws a seminar on 27th july on revised schedule b/s
i'll give you a link (i m still searching)
u can see ppt