Query regarding revised schedule vi

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As per Note No. 3(b) of the General Instructions for preparing the Balance Sheet as per the Revised Schedule VI, "a liability shall be classified as current if it is held primarily for the purpose of being traded."

What is the meaning of this clause, in specific context of the use of the words "for the purpose of being traded"?

Should it mean a liability held during the course of trade? i.e., any liability like trade payables, advances received towards sale, etc., then it makes the 1st two conditions redundant.

Replies (6)

Pleas tell me where I show the Preliminary Expenses Balance Sheet as per Revised Schedule-VI

exactly liab for purpose of being traded is not required i suppose

please tell me, As per revised schedule VI , the remuneration paid to directors  comes under the head "Employees Benefit Expense" or some other head ?? 

hmmm i think Managerial remmn has to be shown under Employee benefits or u have the option to add a line item separately for the same.

Originally posted by : suresh kumar jangid

Pleas tell me where I show the Preliminary Expenses Balance Sheet as per Revised Schedule-VI


Misc Expenditure head is not given in the Revised SchVI.

U can show such items under other current/non-current assets depending upon the amt

that is to be w/o in the next 12 m.

As per AS 26 preliminary exp has to be w/o immediately..

Originally posted by : siri

exactly liab for purpose of being traded is not required i suppose

I realised that its meant to cover financial instruments.

but interestingly guidance not of icai doesnt give much info on the same.
 

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