changes in sch vi

8/3/2019 Changes in Sch VI

1/21

Changes in Schedule VIChanges in Schedule VI

y

By: Lavina Bajaj


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


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


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.


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.


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


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


8/21

BorrowingsBorrowings


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


9/21

Deferred Tax Assets / LiabilitiesDeferred Tax Assets / Liabilities


Deferred Tax assets / liabilities were

not specified.

Deferred Tax assets / liabilities to be

disclosed under non-current assets /

liabilities as the case may be.


10/21

Sundry CreditorsSundry Creditors


Creditors were broken up in to micro

& small suppliers and other creditors

Classified under Long Term Liabilities

as Trade Payables and under current

Liabilities.


11/21

LONG TERM DEBTLONG TERM DEBT

CURRENTMATURITYCURRENTMATURITY


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


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.


13/21

InvestmentsInvestments


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


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.


15/21

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


16/21

Cash & BankBalancesCash & BankBalances


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.


17/21

Loans & AdvancesLoans & Advances


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.


18/21

PROFIT& LOSSPROFIT& LOSS EXPENSESEXPENSES


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


19/21

Finance CostFinance Cost


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


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


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

changes in sch vi

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