Hello Guys,
Please confirm whether amount drawn over and above the Bank OD limit shall be shown under short term borrowings or under other current liabilities?
sarang sharma (Artical) (38 Points)
14 December 2013Hello Guys,
Please confirm whether amount drawn over and above the Bank OD limit shall be shown under short term borrowings or under other current liabilities?
GAUTAM SHARMA
(Audit Assistant)
(353 Points)
Replied 14 December 2013
Loans payable on demand should be treated as part of short-term
borrowings. Short-term borrowings will include all loans within a period of 12
months from the date of the loan. In the case of short-term borrowings, all
defaults existing as at the date of the Balance Sheet should be disclosed
(item-wise). Current maturity of long-term borrowings should not be classified
as short-term borrowing. They have to be classified under Other current
liabilities. Guidance on disclosure on various matters under this Para should
also be drawn, to the extent possible, from the guidance given under Longterm
borrowings.
CAclubindia
