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Introduction

• Old Schedule VI had outlived its utility;

• Revised Schedule VI effective from 1st April, 2011;

• Being a statutory format its early adoption is not permitted;

• Revised Schedule VI has been framed as per the existing non-converged Indian Accounting Standards notified under the Companies (Accounting Standards), Rules, 2006;

Requirements under Revised Schedule VI

• Accounting Standards will prevail over the Schedule;

• Revised Schedule VI has eliminated the concept of ‘schedule’;

• Terms in the Revised Schedule VI will carry the meaning as defined by the applicable Accounting Standards;

• All items of assets and liabilities are to be bifurcated between current and non-current portions and presented separately on the face of the Balance Sheet

• Vertical format for presentation only prescribed;

• Prescribes minimum disclosure requirements. AS disclosures are additional;

• Source of Funds now is Equity and Liabilities;

• Application of Funds now is Assets;

• Shareholding of more than 5% shares in the company now needs to be disclosed;

• Share allotments for non-cash consideration, buy back to be disclosed;

• Statement of Profit and Loss (Dr. Bal.) will be disclosed under the head “Reserves and Surplus”

• Share application money pending allotment not a part of Shareholders’ Funds;

• “Sundry Debtors” has been replaced with the term “Trade Receivables”;

• Disclosure of trade receivables outstanding for a period exceeding six months from the date the bill/invoice is due for payment;

• Tangible assets under lease are required to be separately specified under each class of asset;

• Current Liabilities will no longer be shown as deduction from Current Assets

• Defaults in repayment of loans and interest to be specified in each case;

• New name for P & L Account as “Statement of Profit and Loss”;

• Format for Statement of Profit and Loss;

• Materiality aspects – percentage criterion;

• Dividends from subsidiary company;

• Segregation of Revenue components into revenue from:

1. sale of products,

2. sale of services, and

3. other operating revenues

• Separate head for Intangible Assets and Intangible Assets under Development;

• Information about Investments bought/ sold need not be disclosed;

• Capital Advances have to be shown separately under “Loans and Advances” instead of CWIP/ Fixed Assets;

• Miscellaneous Expenditure as a separate head does not exists now

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By: CA Kamal Garg

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