Shedule vi

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CA Hanuma

CA Hanuma (Querist)
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23 September 2011 where i should show mis. exp like preliminary exp not written off in revised schedule IV

CA Sumat Singhal

CA Sumat Singhal (Expert)
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23 September 2011 ISSUES THAT NOT COVER IN REVISED SCHEDULE VI
The revised Schedule VI does not contain any specific disclosure requirement for the unamortized portion of expense items such as share issue expenses, ancillary borrowing cost and discount or premium relating to borrowings. The existing Schedule VI required these items to be included under the head “Miscellaneous Expenditure.” Does it mean that such expenses will have to be charged off to the P&L immediately?
SOLUTION THAT MAY BE POSSIBLE
AS 16 Borrowing Costs alludes that ancillary borrowing cost and discount or premium relating to borrowings could be amortized over the loan period. Further, share issue expenses, discount on shares, ancillary costdiscount- premium on borrowing, etc., being a special nature item are excluded from the scope of AS 26.
Keeping this in view, certain companies have taken a view that it is an acceptable practice to amortize these expenses over the period of benefit, i.e., normally 3 to
5 years. The revised Schedule VI does not deal with any accounting treatment and the same continues to be governed by the respective accounting standards/ practices. Further, the revised Schedule VI is clear that additional line items can be added on the face or in the notes. Keeping this in view, we believe that companies can disclose the unamortized portion of such expenses as “Unamortized expenses”, under the head “other current/ non-current assets”, depending on whether
the amount will be amortized in the next 12 months or thereafter.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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28 September 2011 well i appreciate you poorna for pointing out such a nice point, i also believe that it must be disclosed under Other non-current Assets . I do not agreed with Sumaton the issue of disclosing the same under Other current assets as it does not fall in the definition of Current asset itself

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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28 September 2011 Plz refer point M-"Other Non current assets" on page 33 of notification
point(ii) Others (specify nature)

In the above category, the above item will lie definately

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