Changes in Sch VI
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Transcript of Changes in Sch VI
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8/3/2019 Changes in Sch VI
1/21
Changes in Schedule VIChanges in Schedule VI
y
By: Lavina Bajaj
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8/3/2019 Changes in Sch VI
2/21
TITLETITLE
Liabilities and Assets were classified
under the heading ofSOURCE
OF FUNDS &
APPLICATION OFFUNDS
The Liabilities and Assets to beclassified under the heading of
EQUITY AND LIBILITIES
& ASSETS
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8/3/2019 Changes in Sch VI
3/21
New Disclosures in Share CapitalNew Disclosures in Share Capital
y A reconciliation of the number of shares
outstanding at the beginning and at the
end of the reporting period
y Shares in in the company held by each
shareholder holding more than 5% share
specifying the number of share held
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8/3/2019 Changes in Sch VI
4/21
New Disclosures in ShareNew Disclosures in Share
CapitalCapitalOld Discloser New Discloser
Authorised Capital: 1,00,000 Authorised Capital: 1,00,000
Issued & subscribed Capital: 1,00,000 Issued & subscribed Capital: 1,00,000
Share Application: 10,00,000Pending for Allotment
Share Application: 10,00,000Pending for Allotment
No Restriction Now terms & conditions of share
application money needs to be
disclosed as if sufficient balance of
Authorised capital is not available.
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8/3/2019 Changes in Sch VI
5/21
RESERVES & SURPLUSRESERVES & SURPLUS
Old ScheduleVI Revised ScheduleVI
P&L debit balance was shown under
the head Miscellaneous expenditure &
losses
Debit balance of Profit and Loss
Account to be shown as negative
figure under the head Surplus.Therefore, reserve & surplus balance
can be negative.
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8/3/2019 Changes in Sch VI
6/21
Separate disclosure of Current LiabilitySeparate disclosure of Current Liability
Old Discloser New Discloser
Earlier Current Liabilities and Provisions
are shown by deducting from Current
Assets under the Head of
APPLICATION OF FUNDS
Now it is to be shown separately as Non
Current Liabilities and Current Liabilities
under the Head EQUITYAND
LIBILITIES
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8/3/2019 Changes in Sch VI
7/21
Criteria for classifying Current LiabilityCriteria for classifying Current Liability
y It is expected to be settled in the companysnormal operating cycle.
y It is held primarily for the purpose of being traded.
y It is due to be settled within twelve months afterthe reporting date; or
y The company does not have an unconditional rightto defer settlement of the liability for at least
twelve months after the reporting date.Otherthan thatall should be classified as Non
CurrentLiabilities
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8/3/2019 Changes in Sch VI
8/21
BorrowingsBorrowings
Old ScheduleVI Revised ScheduleVI
Short term & long term borrowings are
grouped together under the head Loan
funds sub-head Secured / Unsecured
Long term borrowings to be shown
under non-current liabilities and short
term borrowings to be shown under
current liabilities. Borrowings shallfurther be sub- classified as Secured
and Unsecured.
Period and amount of continuing
default as on the balance sheet date inrepayment of loans and interest to be
separately specified
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8/3/2019 Changes in Sch VI
9/21
Deferred Tax Assets / LiabilitiesDeferred Tax Assets / Liabilities
Old ScheduleVI Revised ScheduleVI
Deferred Tax assets / liabilities were
not specified.
Deferred Tax assets / liabilities to be
disclosed under non-current assets /
liabilities as the case may be.
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8/3/2019 Changes in Sch VI
10/21
Sundry CreditorsSundry Creditors
Old ScheduleVI Revised ScheduleVI
Creditors were broken up in to micro
& small suppliers and other creditors
Classified under Long Term Liabilities
as Trade Payables and under current
Liabilities.
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8/3/2019 Changes in Sch VI
11/21
LONG TERM DEBTLONG TERM DEBT
CURRENTMATURITYCURRENTMATURITY
Old ScheduleVI Revised ScheduleVI
No specific mention for separate
disclosure of Current maturities of long
term debt
Current maturities of long term debt to be
disclosed under other current liabilities
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8/3/2019 Changes in Sch VI
12/21
Fixed AssetsFixed Assets
Old ScheduleVI Revised Schedule VI
There was no bifurcation required of
tangible & intangible assets on the faceof the Balance sheet.
Fixed assets to be shown under non-
current assets and it has to bebifurcated in to Tangible & intangibleassets on the face of the Balance Sheet.
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8/3/2019 Changes in Sch VI
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InvestmentsInvestments
Old ScheduleVI Revised ScheduleVI
Both current & non-current
investments to be disclosed under the
head investments
Current and non-current investments
are to be discosed separately under
current assets & non-current assets
respectively
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8/3/2019 Changes in Sch VI
14/21
Criteria for classifying Current AssetsCriteria for classifying Current Assets
y It is expected to be realized in, or is intended forsale or consumption in the companys normaloperating cycle.
y
It is held primarily for the purpose of being tradedy It is Expected to be realized within 12 months
after reporting date.y It is cash or cash equivalent unless it is restricted
from being exchanged or used to settle a liability
foe at least twelve months after the report date.Otherthan thatall should be classified as Non
CurrentAssets.
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8/3/2019 Changes in Sch VI
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DepositsDeposits
Old Schedule VI Revised Schedule VI
Lease deposits are part of loans &
advances
Lease deposits to be disclosed aslong term loans & advances underthe head non-current assets
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8/3/2019 Changes in Sch VI
16/21
Cash & BankBalancesCash & BankBalances
Old ScheduleVI Revised ScheduleVI
Bank balance to be bifurcated in
scheduled banks & others
Bank balances in relation to earmarked
balances, held as margin money
against borrowings, deposits with
more than 12 months maturity, each ofthese to be shown separately.
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8/3/2019 Changes in Sch VI
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Loans & AdvancesLoans & Advances
Old ScheduleVI Revised ScheduleVI
Loans & Advance are disclosed
alongwith current assets
Loans & Advances to be broken up in
long term & short term and to be
disclosed under non-current & currentassets respectively
And further bifurcation with capital
advances security deposits etc.
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8/3/2019 Changes in Sch VI
18/21
PROFIT& LOSSPROFIT& LOSS EXPENSESEXPENSES
Old ScheduleVI Revised ScheduleVI
Any item under which
expense exceeds one per cent of the
total revenue of the company or5,000
which ever is higher; was disclosed
separately
Any item of income / expense which
exceeds one per cent of the revenue
from operations or1,00,000, which
ever is higher; to be disclosed
separately
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8/3/2019 Changes in Sch VI
19/21
Finance CostFinance Cost
Old ScheduleVI Revised ScheduleVI
Finance cost to be classified in fixed
loans & other loans
Finance cost shall be classified as
interest expense, other borrowing costs
& Gain / Loss on foreign currencytransaction & translation
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8/3/2019 Changes in Sch VI
20/21
Rounding off of FiguresRounding off of Figures
appearing in financial statementappearing in financial statementOld ScheduleVI Revised ScheduleVI
Turnover of less than 100 Crores -
R/off to the nearest Hundreds,
thousands or decimal thereof
Turnover of less than 100 Croress -
R/off to the nearest Hundreds,
thousands, lakhs or millions or
decimal thereof
Turnover of 100 Crores or more but
less than500 Crores - R/off to the
nearestHundreds, thousands, lakhs
or millions or decimal thereof
Turnover of 100 Croress or more -
R/off to the nearest lakhs, millions or
crores, or decimal thereof
Turnover of 500 Crs or more - R/off to
the nearest Hundreds, thousands,
lakhs, millions or crores, or decimal
thereof
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8/3/2019 Changes in Sch VI
21/21
PurchasesPurchases
Old Schedule VI Revised Schedule VI
The purchase made and the opening &
closing stock, giving break up in
respect of each class of goods tradedin by the company and indicating the
quantities thereof.
Goods traded in by the company tobe disclosed in broad heads in
notes. Disclosure of quantitativedetails of goods is diluted