Changes in Schedule III


The amendments are applicable to all financial statements authorised for issue on or after 11 October 2018, irrespective of the period to which these financial statements pertain. The companies will also need to re-group/ reclassify their comparative information in accordance with the new requirements. In the case of Ind AS financial statements, companies will need to make additional disclosures required by paragraphs 41 & 42 of Ind AS 1 Presentation of Financial Statements for the reclassification.

Overview of key changes to Ind AS/ Indian GAAP Schedule III

The changes impact face of the balance sheet, statement of changes in equity and notes to the financial statements. Many changes are clarificatory in nature whereas others require additional disclosures.

Changes to Ind AS Schedule III


Area impacted

Old requirement

New requirement

Impact on half yearly balance sheet published as per SEBI requirement

Face of the balance sheet

'Trade Payables' are shown as a single line item under the head 'Current Liabilities.'

In line with the disclosures required under the Micro, Small and Medium Enterprises Development (MSMED) Act, Trade Payables will be split into the following two sub-categories:

(A) Total outstanding dues of micro enterprises and small enterprises; and

(B) Total outstanding dues of creditors other than micro enterprises and small enterprises.

 

Statement of Changes in Equity

The term used is 'Securities Premium Reserve.'

The term has been changed to 'Securities Premium.'

No

Notes to Statement of Changes in Equity

Ind AS Schedule III does not contain any specific requirement to give description of each reserve. However, Ind AS 1 - paragraph 79(b) requires disclosure of a description of the nature and purpose of each reserve within equity.

Description of the purpose of each reserve within equity should be disclosed in the notes. No change in Ind AS 1 disclosure requirement.

No

Notes to the financial statements

  • 'Trade receivables' and 'Loans receivables' under the head 'Non-current assets'
  • 'Trade receivables' and 'Loans receivables' under the head 'Current assets'

Pre-revised sub-classification

  • Secured, considered good
  • Unsecured considered good
  • Doubtful

Revised sub-classification (based on ECL model under Ind AS 109)

  • Considered good - Secured
  • Considered good - Unsecured
  • Receivables which have significant increase in credit Risk (Refer paragraphs B5.5.15 to B5.5.24 of Ind AS 109), and
  • Receivables - credit impaired (Refer definition in Appendix A to Ind AS 109)

No

Notes to the financial statements

  • 'Trade payables' under the head 'Current liabilities'

MSMED related disclosures are not specifically required by Ind AS Schedule III. However, the MSMED Act requires specified disclosures to be made in the annual Financial Statements.

Specified disclosures added as required under MSMED Act

 

Changes to Indian GAAP Schedule III

  • Face of the balance sheet - The term 'Fixed assets' has been replaced by the term 'Property, Plant and Equipment.' A similar wording change has also been made in the notes to the financial statements. This is a clarificatory change to align with the terminology used in the revised AS 10, Property, Plant and Equipment.
  • Notes to the financial statements - The term 'Securities Premium Reserve' has been substituted by the terms 'Securities Premium.' This is also a clarificatory change to align with the terminology used in the Companies Act, 2013

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CA Akhil Rastogi  
on 23 October 2018
Published in Audit
Views : 2949

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