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short term and long term in schedule III

Om Prakash (CA) (16 Points)

26 June 2019

hello everyone,
can you let me know, where can I get guidance on short term and long bifurcation of assets and liabilities in schedu
le III.
Early response you will be highly appreciated.
Thanks in advance!!

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2 Replies

Dipesh Jha (PRACTICE ) (673 Points)
Replied 26 June 2019

refer Guidance note on schedule III😘

CA Salman Ansari (Salman Ansari & Assoc.) (247 Points)
Replied 27 June 2019

An asset shall be classified as ‘current’ when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in the company’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realized within twelve months after the reporting date; or
(d) it is Cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

All other assets shall be classified as ‘non-current’.
Based on the above definition, on the face of the Balance Sheet, the following items shall be disclosed under non-current assets: -
(a) Fixed Assets
(i) Tangible assets;
(ii) Intangible assets;
(iii) Capital work-in-progress;
(iv) Intangible assets under development
(b) Non-current investments
(c) Deferred tax assets (net)
(d) Long-term loans and advances
(e) Other non-current assets

Source: https://kb.icai.org/pdfs/PDFFile5b27859a90bfc7.83429474.pdf