Schedule vi

Originally posted by : Asmi
	where to put miscellaneous expenses under schedule VI.

(IV) Expenses:

Other Expenses

Note: Separate disclosure of expense is required if it exceeds 1% of Total Operating Revenue or Rs. 1,00,000 whichever is higher.

Originally posted by : |)eep @ k Gupt/\
	Originally posted by : Asmi where to put miscellaneous expenses under schedule VI. (IV) Expenses: Other Expenses Note: Separate disclosure of expense is required if it exceeds 1% of Total Operating Revenue or Rs. 1,00,000 whichever is higher. (If the query is for expenses, revenue in nature)

If the query is for miscellaneous expenses, fictitious assets in nature, then do as rightly suggested by Abhinav. Unamortized Portion of such expenses, under the head “Other Current/ Non–Current Assets”, depending on whether the amount will be amortized in the next 12 months or thereafter.

Refer AS-26 Start up cost are to be written off as there is no future economic benefits which flow to the organisation .So Miscallaneous expenditure cannot be amortised as it was done in old schedule vi.Now Accounting standard prevails over new  Schedule vi hence to be done accordingly

Originally posted by : sivaram
	Refer AS-26 Start up cost are to be written off as there is no future economic benefits which flow to the organisation .So Miscallaneous expenditure cannot be amotised as it was done in old schedule vi.Now Accounting standard prevails over new  Schedule vi hence to be done accordingly

I was not aware of the fact the AS will prevail over Schedule VI (R). Thanks for the information. Just now confirmed with the ICAI FAQ's. 
.
But as per Sec. 35D of the Income Tax Act, preliminary expenses are to be written off in 5 annual installments. Now what should be the treatment for this?

Good Question Deepak Gupta In Financials it  is not written off in 5 equal instalments it is charged to profit and loss and never shown in balance sheet and also sec35D in Income tax still prevails so you will have a timing difference to be dealt as per AS-22

IS schedule 6 applicable even for preparation of balance sheet in amalgamation and reconstruction????/

plss any one clarify this doubt

Originally posted by : sivaram
	Good Question Deepak Gupta In Financials it  is not written off in 5 equal instalments it is charged to profit and loss and never shown in balance sheet and also sec35D in Income tax still prevails so you will have a timing difference to be dealt as per AS-22

Dear Sivaramji,

Pls explain -

Miscallaneous expenditure cannot be amortised as it was done in old schedule vi.Now Accounting standard prevails over new  Schedule vi hence to be done accordingly

Ms Neha

Start up cost previously are written off in 5 equal instalments in old schedule vi.previously law has been given first preference so when there is a conflict between law and Accounting standards the law will prevail.Now as per new schedule vi Accounting standard is given 1st preference tover law ACCOUNTING STANDARD 26 ON INTANGIBLE ASSETS SAYS START UP COSTS ARE TO BE EXPENSED AS THERE IS NO FLOW OF ECONOMIC BENEFITS BECAUSE OF THIS EXPENDITURE HOPE I HAVE CLARIFIED YOUR DOUBT

Put it under other expenses..!!!

Hello,

What about those preliminary exp which were upto 31.03.2011 amortised for 5 years i.e. 1/5th each year.

Does the unamortised portion of those preliminary exp be transferred to other expenses ?

Regards

Neha

Unamortized Portion of such expenses, under the head “Other Current/ Non–Current Assets”, depending on whether the amount will be amortized in the next 12 months or thereafter.

Eg. Preliminary exp 1.00 Lacs

First year-

In 31.03.2010 charged to Prel exp W/off                20000.00           Closing fig  80000

Second year -

In 31.03.2011 charged to Prel exp W/off                20000.00            Closing fig  60000

What will be the treatment of Preliminary exp amounting to Rs. 60000 in the balance sheet as on 30.03.2012 as per revised schedule VI ?

IT Wud be shown as Rs. 20000 in Other Current Liabities and Rs. 40000 as Other Non current Liabilities..!!!!