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Revised schedule doubt

mohit gupta (intern, CA Final) (81 Points)

26 January 2013

Please solve the following query in Revised Schedule VI:
Under category of Current Liabilities and Current Assets

"It is held primarily for the purpose of being traded'

What is the meaning of this line?

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11 Replies

ok (CA Job) (39 Points)
Replied 26 January 2013

I think it means stock in trade

mohit gupta (intern, CA Final) (81 Points)
Replied 26 January 2013

what about its meaning under current liabilities????????

%$ anil ....article trainee (help ever fnd forever) (204 Points)
Replied 27 January 2013

"It is held primarily for the purpose of being traded'

its all about(current liabilities) transactions are related purily with business nd whch r expressed in monetary terms::::nd used for day to day operations i.e. nthg but with in a period of one year dude...

mohit gupta (intern, CA Final) (81 Points)
Replied 27 January 2013

Thanks but could not relate the meaning ...Please reply comprehensively

(Guest)

"It is held primarily for the purpose of being traded"

This line is required to be understood in context of financial instruments say options & futures , so these financial instruments which are primarily held for the purpose of being traded are covered under the head Current Assets & Current Liabilities.

Akshay (CA-Final) (105 Points)
Replied 27 January 2013

in simple language: those assets/liabilities which could be sale. for exmpl debtors can be sold under factoring..

mohit gupta (intern, CA Final) (81 Points)
Replied 28 January 2013

I have unerstood its meaning under current assets?

What about current liabilities?

Why the word "Traded" being used here?

Jagruti Arolkar (TAXATION) (91 Points)
Replied 28 January 2013

"It is held primarily for the purpose of being traded'

This is one of the condition , to classify current or non current. This condition is only applicable to assets . ( Relevant for Inventories , as inventories always current asset as per ICAI FAQ)