Loan from directors in revised schedule vi

A liability shall be classified as current when it satisfies any of the following criteria:

(a)  it is expected to be settled in the company’s normal operating cycle;

(b)  it is held primarily for the purpose of being traded;

(c)  it is due to be settled within twelve months after the reporting date; or

(d)  the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities shall be classified as non-current.

A payable shall be classified as a ‘trade payable’ if it is in respect of the amount due on account of goods purchased or services received in the normal course of business.

go through this n decide accordingly

regards

kavitha

just go through every defination under non cuurent liabilities n current liabilities n decide

Thanks kavitha.

lets discuss this. loan from directors doesnot have any particular time period or payment terms so basically it is payable on demand. and it is not trade payable also.

So i think it will be a current liability - short term borrowing unsecured.

what u say

ok cool short term borrowings unsecured