Statement of profit & loss- revised sch vi
This query is : Resolved
Sagar Kulkarni
(Querist)
16 August 2012
As per Revised Sch VI, any item of expenditure, which is higher than Rs. 1 Lakh or 1% of Operating Revenue, whichever is higher, should be separately disclosed.
My querry is whether Company can show such expenses under the headings not covered by format of Statement of Profit & Loss? For example, where the Travelling Expenses are higher than 1% of Operating Revenue (or Rs. 100000/- as case may be), whether Company can show such expenses directly as Travelling Expenses in Statement of Profit & Loss itself or it should be shown under Other Expenses?
Similarly, Company has incured say, Manufacturing Expenses under different heads like Labour Charges Paid, Design & Drawing Charges etc. which cumulatively go beyond 1% of Operating Revenue. Whether they can be shown separately as Manufacturing Expenses in Statement of Profit & Loss and a Note can be prepared for that or should they be shown as Other Expenses?
My querry is whether Company can show such expenses under the headings not covered by format of Statement of Profit & Loss? For example, where the Travelling Expenses are higher than 1% of Operating Revenue (or Rs. 100000/- as case may be), whether Company can show such expenses directly as Travelling Expenses in Statement of Profit & Loss itself or it should be shown under Other Expenses?
Similarly, Company has incured say, Manufacturing Expenses under different heads like Labour Charges Paid, Design & Drawing Charges etc. which cumulatively go beyond 1% of Operating Revenue. Whether they can be shown separately as Manufacturing Expenses in Statement of Profit & Loss and a Note can be prepared for that or should they be shown as Other Expenses?
Amol S Joglekar
(Expert)
16 August 2012
I think you are saying the same thing as the circular contemplates. The circular says that any such exenditure is DISCLOSED which is higher than 1% of operating revenue OR 1,00,000/- You are showing it separately then what is your problem. Go ahead.
CA CS Amit S. Kedia
(Expert)
16 August 2012
1. The option is yours, but it is better way of presentation to put the travellng expenses under the head administrative expenses.
2. The expenses under the individual leadger should not exceed Rs. 1 lakh.
2. The expenses under the individual leadger should not exceed Rs. 1 lakh.
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