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