MCA announces new Trade Payables Ageing Schedule



Quick Summary
The Ministry of Corporate Affairs (MCA) has announced amendments to Schedule III of the Companies Act, 2013. These changes, effective from 1st April 2021, introduce new requirements for the preparation of a company's Balance Sheet and Profit and Loss statement. Key updates include modifications to how trade payables and trade receivables are reported, alongside adjustments to asset classifications.

The Ministry of Corporate Affairs has made amendments to Schedule III of the Companies Act, 2013, wherein, various new changes have been inculcated with regards to Balance Sheet, Trade Payable, and Trade Receivables etc. Read the official notification below:

[TO BE PUBLISHED IN GAZETTE OF INDIA, EXTRAORDINARY, PART-II,
SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
Notification
New Delhi, 24th March, 2021

G.S.R. (E).—In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following further amendments in Schedule III to the said Act with effect from 1st day of April, 2021, namely:-

MCA Updates Trade Payables Ageing Schedule from April 1

In the said Schedule,-

(a) in Division I,-

(i) under the heading "General instructions for preparation of Balance Sheet and statement of Profit and Loss of a company", under sub-heading "General instructions", in paragraph 4, in clause (i), for the word "may" the word "shall" and for the word "Turnover", at both the places where it occurs, the words "Total Income" shall be substituted;

(ii) in Part I- Balance Sheet,-

(A) under the heading "II Assets", under sub-heading "Non-current assets", after the words "Property, Plant and Equipment", the words "and Intangible assets" shall be inserted and for the words "Tangible Assets", the words "Property, Plant and Equipment" shall be substituted;

(B) in the "Notes", under the heading "General Instructions for Preparation of Balance Sheet", in paragraph 6,-

To download the complete notification, find the enclosed file

FAQ :

The MCA has made amendments to Schedule III of the Companies Act, 2013, introducing new requirements for the Balance Sheet and Profit and Loss statement.

The amendments are effective from 1st April 2021.

The changes affect sections related to Trade Payable, Trade Receivables, and asset classifications, including Property, Plant and Equipment, and Intangible assets.

In the general instructions for preparing the Balance Sheet, the word 'may' has been replaced with 'shall', and 'Turnover' has been substituted with 'Total Income'.

The official notification is to be published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i).




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