Revised schedule vi

Till the completion of construction of Flats/plots, it should be shown as Capital Work-in Progress under Non-Currents Assets.

If it is fully completed same can be shown as Building under Tangible Assets.

However, in case of Construction company or Real Estate company, the treatment will differ. The fully constructued cost of flats/plots will be treated as Inventories under Current Assets as per the Company policies.

its a real estate company where flats are not fully constructed. what it should be in this case

Captial Work in Progress under Non- Current Assets

ok thank you Mr subhash dangi

what if land is not our asset. then what?

Hi friends.

There is a provision for showing changes in the inventory. Just show your figures there.

Regards

it depends whether the building is under construction or has bin fully constructed.. if its a fully constructed building then it comes under fixed assets, if its nt yet finishd then it comes under capital work in progress. and i dont know if i'm right, but i personally think that building comes under fixed asset right?? it cannot be classified as an inventory

In the earlier schedule VI current liabilities were deducted from Current Assets. But now it comes under the liability side. And I think it would be helpfull for the new comer to get it very easily. Becaue if there is a separate liability side than why should we deduct it from assets....

Dear Suresh you are right but for real Estate Company making of Flats/constructoin is its Inventory. that why they should show as inventory under under non Currrent Assests and 

if land is not own then it should be show as non current liabilites.

rectify me if i am wrong

It is Inventory (work in progress).

As far as classification is concerned...

Point 1(b) of "General Instructions for Preparation of Balance Sheet" (Revised Schedule) says that "an asset shall be classified as current if it is held primarily for the purpose of being traded".

It means Inventories shall always be classified as Current Asset. It should not be classified on the basis of expected realisation period.