Revised schedule vi
This query is : Resolved
Amrit Dalmia
(Querist)
26 October 2013
Dear Sir/Mam,
Where 'Deferred Government Grants' and 'Unclaimed MAT Credit Entitlement' shall be disclosed in the Balance Sheet as per revised Schedule VI?
Where 'Deferred Government Grants' and 'Unclaimed MAT Credit Entitlement' shall be disclosed in the Balance Sheet as per revised Schedule VI?
CA Parul Saxena
(Expert)
26 October 2013
Unclaimed MAT Credit entitlement:
It should be classified as Current Asset as you would consider this figure at the time of computation of liability on 31.03.2014
Deferred government grants:-
It should be classified as Current Liabilities if you expect to settle this upto 31.03.2015 otherwise classify it as Non-Current Liabilities.
It should be classified as Current Asset as you would consider this figure at the time of computation of liability on 31.03.2014
Deferred government grants:-
It should be classified as Current Liabilities if you expect to settle this upto 31.03.2015 otherwise classify it as Non-Current Liabilities.
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26 October 2013
Deferred govt grants in no way satisfy the criteria of being a liabilty to be credited under current liabilities.
Infact it is income which is just deferred over the years hence it shown under reserves and not current or non current liability.
Infact it is income which is just deferred over the years hence it shown under reserves and not current or non current liability.
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Amrit Dalmia
(Querist)
28 October 2013
Please clarify the presentation of 'Deferred Govt Grants'?
22 July 2025
Deferred Government Grants — Presentation under Revised Schedule VI
Nature:
Deferred government grants represent government assistance related to assets or income, which is recognized over multiple periods.
Accounting Treatment:
It is not a liability because it does not represent an obligation to pay money or provide services.
Instead, it is treated as deferred income, recognized gradually in the Profit & Loss account over the useful life of the related asset or as the related expenses are incurred.
Balance Sheet Presentation:
Since it is deferred income, it is shown under ‘Reserves and Surplus’ (a part of shareholders’ funds) or in a separate head called “Deferred Government Grants” under ‘Other Equity’ or ‘Reserves & Surplus’.
It should not be shown as a liability (neither current nor non-current).
Summary:
Item Classification under Revised Schedule VI
Deferred Government Grants Shown under Reserves and Surplus (Equity section)
Nature:
Deferred government grants represent government assistance related to assets or income, which is recognized over multiple periods.
Accounting Treatment:
It is not a liability because it does not represent an obligation to pay money or provide services.
Instead, it is treated as deferred income, recognized gradually in the Profit & Loss account over the useful life of the related asset or as the related expenses are incurred.
Balance Sheet Presentation:
Since it is deferred income, it is shown under ‘Reserves and Surplus’ (a part of shareholders’ funds) or in a separate head called “Deferred Government Grants” under ‘Other Equity’ or ‘Reserves & Surplus’.
It should not be shown as a liability (neither current nor non-current).
Summary:
Item Classification under Revised Schedule VI
Deferred Government Grants Shown under Reserves and Surplus (Equity section)
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