Finalization of balance sheet (Part - 2)

Originally posted by : Rohit Kapoor
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simply outstanding!!!!!!!

really awesome!!!!!!

please keep sharing

Very Good Presentation Mr. Sanyam, Keep it up

Hey Sanyam! you have mentioned that FD even if having a maturity of more than 3-12 months should be shown in cash and cash equivalents..Please explain. I mean why it should'nt be shown as a non-current item.

Also, whether prior period items have to be shown under 'Exceptional items' or 'Extraordinary Items'?

Great Article Sanyam!! Multilple issues covered.

Great Presentation ...!!

Nice Write Up...

Very Valuable Article Sanyam Sir. Thanks for Sharing.

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good way of explainning and interpretation...keep it up...

Dear Abhinandan Jain

You have raised a very relevant query. According to the definition of "Investments" in AS-13 and the "Guidance Note on Terms Used in Financial Statements", Investments are assets held by an enterprise for earning income by way of dividends, interest, and rentals, for capital appreciation, or for other benefits to the investing enterprise. Thus, bank FD can fall under the category of investments.

Further, the newly notified Schedule VI (termed as Revised Schedule VI) gives preference of Accounting Standards over Schedule VI requirements.

In my opinion, Bank FD with more than 3 months but less than 12 months maturity should be treated as current investments. Bank FDs with more than 12 months maturity should be treated as non-current investments.

Bank FDs with less than 3 months maturity come within the definition of "Cash Equivalents" as per AS-3 and hence will have to be categorised as cash equivalents.