Revised schedule vi

This query is : Resolved

Joseph Joy Puthussery (Querist)
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06 November 2012 where should we disclose fixed deposits with banks? under cash & cash equivalents or long term loans and advances?

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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06 November 2012 Fixed deposits have a maturity of more than 12 months from the balance sheet date shall be classified under Non-current assets.
If it is less than 12 months, then same should be shown under Cash and Cash equivalents.

CA Manish

CA Manish (Expert)
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06 November 2012 The 12 month will be calculted from the date of fixed deposit not from the balance sheet date.

It means if the original maturity is less than 12 month then it will be shown under cash and cash equivalents.

Joseph Joy Puthussery

Joseph Joy Puthussery (Querist)
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08 November 2012 sir, i accept to both of you. The guidance note on revised sch VI requires separate disclosure for deposits having more than 12 months maturity. if so, in non current asset, under which sub heading shall we show it?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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22 November 2012 As per the Guidance Note on Revised Schedule VI issued by ICAI, the caption “Cash and Cash equivalents” should be changed to “Cash and bank balances,” which may have two sub-headings, viz., “Cash and cash
equivalents” and “Other bank balances.”

Fixed deposits having original maturity period exceeding 3 months should be classified under "Other bank balances"

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