2. Need & Importance
The main aim of Revised Schedule VI is to attain compatibility
and convergence with IFRS in India.
To eliminate numerous statistical and disclosure requirement
which are not relevant for investors.
The existing Schedule VI does not require companies to classify
their assets and liabilities into current and non-current.
For ours perspective, ICAI has mandatory implemented
Revised version in Nov 2012 exams and onwards.
3. Major Issues
Only vertical form of Balance Sheet and P&L is allowed.
All assets & liabilities to be classified into current and non-current.
Applicable to all companies.
Form of statement of P&L has been provided.
AS has overriding effects.
All addition disclosure, line-items and sub line-items shall be made in
way of notes to accounts.
4. General Instructions
• Each item on the face of the Balance sheet and statement of the
profit and loss shall be cross- referenced to any related information
in the notes to the accounts.
• Figures of previous period for all items shall also be disclosed
• Minimum requirement for disclosure on face of statements.
• If Turnover :-
< ` 100 crores = Figures to be in nearest hundreds,
thousands, lakhs or millions or decimals thereof.
> ` 100 crores = Figures to be in nearest lakhs or millions or
decimals thereof.
5. Current/Non-Current
Distinction
An item is classified as current
if it is involved in the entity's operating cycle or
is expected to be realized/ settled within twelve
months after reporting period or
If it is held primary for trading or
Is cash or cash equivalent or
If entity does not have unconditional right to defer
settlement of liability for atleast 12 months after
reporting period.
Other assets and liabilities are non current
6. Balance Sheet : Equity/Liabilities
Particulars Note Figures at the Figures at the
No. end of current end of previous
reporting reporting
period period
Shareholders’ Funds
Share Capital
Reserve & Surplus
Money Reserved against share warrants
Share Application money pending
Allotment
Non Current Liabilities
Long Term Borrowings
Deferred Tax Liabilities (Net)
Other Long Term Liabilities
Long Term Provisions
Current Liabilities
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
7. Key Highlights
The amount of Shareholders’ Fund is to shown after
deduction of debit balance of P&L. As a result
Shareholders’ Fund can be negative.
Separate head for “Miscellaneous Expenditure” has
been discontinued.
Concept of operating cycle has been introduced
Current & Non-current classification of assets &
liabilities on the lines of Ind AS & IFRS
Only Vertical Format
8. What's New
New Line Items - New Line Items -
Liabilities: Assets:
Money received against Intangible Assets under
Share Warrants development
Trade Payables Trade Receivables
Share Application Separate headings for
Money pending classifying Non current
allotment and Current Assets.
Separate headings for Cash and cash
classifying Non current equivalents.
and Current Liabilities.
9. Share Capital
Shares in respect of each class in the company held by
a) its holding company
b) its ultimate holding company including shares held by or by
subsidiaries
c) associates of the holding company or the ultimate holding company
in aggregate;
The Rights, Preference & Restrictions attaching to each Class of Shares
Shares in the company held by each shareholder holding more than 5
percent shares specifying the number of shares held;
Reconciliation in number of Share
Details for 5 years (w/o cash, bonus, bought back)
Calls unpaid
Forfeited shares (amount originally paid up)
10. Reserves & Surplus
Surplus i.e. balance in Statement of Profit & Loss disclosing
allocations and appropriations such as dividend, bonus shares
and transfer to/from reserves etc.
Additions and deductions since last balance sheet to be shown
under each of the specified heads
A reserve specifically represented by earmarked investments
shall be termed as a ‘fund’.
Debit balance of statement of profit and loss shall be shown as a
negative figure under the head ‘Surplus’. So it must be shown
under ‘Reserves and Surplus’ even if the resulting figure is in the
negative.
11. Long Term & Short Term
Borrowings
Borrowings - Classification
Bonds/debentures
Term loans from bank, other parties.
Deposits
Loans and advances from related parties.
Long term maturities of finance lease obligation
Other loans and advances.
Sub- classification as as secured and unsecured, nature of security, guaranteed
by directors or others
Important Point
Convertible/Reedemable bonds/debentures (descending order)
Continuing default in repayment (period and amount, interest)
Terms of repayment of term loans and other loans
12. Other Long-term Liabilities
The amount shall be classified as :
Trade Payables and Others
Long-term & Short-term Provisions
The amount shall be classified as :
Provision for employee benefits
Others (Specify nature)
Removed specific mention of
Provision for taxation
Proposed Dividend
Provision for Contingencies
Provision for Provident Fund Schemes
13. Other Current Liabilities
The amounts shall be classified as:
(a) Current maturities of long-term debt;
(b) Current maturities of finance lease obligations;
(c) Interest accrued but not due on borrowings;
(d) Interest accrued and due on borrowings;
(e) Income received in advance;
(f) Unpaid dividends
(g) Application money received for allotment of securities
and due for refund and interest accrued thereon.
(h) Unpaid matured deposits and interest accrued thereon
(i) Unpaid matured debentures and interest accrued thereon
(j) Other payables (specify nature);
14. Balance Sheet : Assets
Particulars Note Figures at the Figures at the
No. end of current end of previous
reporting reporting
period period
Non- Current Assets
(a) Fixed Assets
Tangible Assets
Intangible Assets
Capital Work in progress
Intangible Assets under development
(b) Non- Current Investments
(c) Deferred Tax Assets (net)
(d) Long Term Loans & Advances
(e) Other Non-Current Assets
Current Assets
(a) Current Investments
(b) Inventories
(c) Trade Receivables
(d) Cash and Cash Equivalents
(e) Short Term Loans and Advances
(f) Other Current Assets
15. Fixed Assets
Tangible Assets
Land, Building, Plant and Equipment, Furniture and Fixtures,
Vehicles, Office Equipments, Others
Asset under lease – shall be separately specified
Reconciliation of the gross and net carrying amounts at
beginning and end of reporting period.
Details of reduction or increase - by way of reduction of capital
or revaluation of assets etc., to be given by way of a note
Intangible Assets
Goodwill, Brands, Computer Software, etc.
Reconciliation & detail same as above
16. Non-current & Current Investment
Non-current/Current investments shall be classified as
trade investments and other investments and it includes
Investment property;
Under each classification, details of names of the bodies
corporate (indicating separately whether such bodies are
(i) subsidiaries,
(ii) associates, or
(iii) joint ventures
Investments carried at other than at cost should be
separately stated specifying the basis for valuation
thereof.
17. Non-current & Current Investment
The following shall also be disclosed:
(a) Aggregate amount of quoted investments and market
value thereof;
(b) Aggregate amount of unquoted investments;
(c) Aggregate provision for diminution in value of
investments
Note :- Their is a conflict between classification of
Investment into current/non-current under AS-13
and Revised Schedule, my view AS-13 to be follow.
18. Long-term Loans & Advances
Long-term loans and advances shall be classified as:
(a) Capital Advances;
(b) Security Deposits;
(c) Loans and advances to related parties (giving details
thereof );
(d) Other loans and advances (specify nature).
Other Non-current Assets
Other Non-current assets shall be classified as:
(a) Long-term trade Receivables.
(b) Other (Specify nature)
19. Inventories
(i) Inventories shall be classified as:
(a) Raw materials;
(b) Work-in-progress;
(c) Finished goods;
(d) Stock-in-trade (in respect of goods acquired for
trading);
(e) Stores and spares;
(f ) Loose tools;
(g) Others (specify nature).
(ii) Goods-in-transit shall be disclosed under the relevant
sub-head of inventories.
(iii) Mode of valuation shall be stated.
20. Cash and Cash Equivalents
(i) Cash and cash equivalents shall be classified as:
(a) Balances with banks;
(b) Cheques, drafts on hand;
(c) Cash on hand;
(d) Others (specify nature).
(ii) Earmarked balances with banks (for example, for unpaid dividend)
shall be separately stated.
(iii) Balances with banks to the extent held as margin money or security
against the borrowings, guarantees, other commitments shall be
disclosed separately.
(iv) Bank deposits with more than 12 months maturity shall be
disclosed separately. (from the date of deposit or as on March 31st
2011)
21. Trade Receivables
Aggregate amount of Trade Receivables outstanding for a
period exceeding six months from the date they are due for
payment should be separately stated.
Short-term Loans & Advance
Classified as under :
(a) Loans & advance to related party
(b) Others (specify nature)
Other Current Assets
It includes as under :
Interest accrued
Unbilled Revenue
Recoverable from Govt. agencies
22. Important Points
Important and common points for Long-term/short-
term loans & advance, other non-current assets, trade
receivables.
(i) Every item under above head shall be separately sub-
classified as:
(a) Secured, considered good;
(b) Unsecured, considered good;
(c) Doubtful.
(ii) Allowance for bad and doubtful loans and advances shall
be disclosed under the relevant heads separately.
(iii) Loans & advances or debt due by directors or other
officer of company or by related firm/pvt co. shall be
separately stated.
23. Contingent Liabilities and
Commitments
Contingent Liabilities to be classified as under :
Claims against company not acknowledge as debts
Guarantees
Other money for which company is contingent liable.
Amount of dividends proposed to be disclosed separately
Commitments to be classified as under :
Uncalled liability on share and other partly paid
investment
Other Commitment (specify nature)
24. Part – II : Statement of Profit & Loss
Particulars Note Figures at the Figures at the
No. end of current end of previous
reporting reporting
period period
Revenue from Operations
Other Income
Total Revenue ( I + II)
Expenses
Cost of Material Consumed
Purchases of Stock in Trade
Changes in inventories of finished goods
Work in progress and stock in trade
Employee Benefit expense
Finance Costs
Depreciation and amortization expense
Other expenses
Profit Before Exceptional and extraordinary
items and tax
Exceptional Items
25. Part – II : Statement of Profit & Loss
Particulars Note Figures at the Figures at the
No. end of current end of previous
reporting reporting
period period
Profit Before extraordinary items and tax
Extraordinary Items
Profit Before Tax
Tax Expense
Current Tax
Deferred Tax
Profit (loss) for the period from continuing
operations
Profit (loss) from discontinuing operations
Tax expense of discontinuing operations
Profit(loss) from discontinuing operations
(after tax)
Profit (loss) for the period
Earnings per equity share
Basic
26. Key Highlights
Format of P&L has been prescribed.
Only Vertical Format.
Classification of expenses by nature needs to be given.
P&L from discontinuing operations and tax expenses
for the same need to be shown separately on the face
of P&L statement.
Quantitative disclosure, detail of managerial
remuneration dispensed with.
Separate disclosure for any item of income or expenses
which exceeds 1 % of revenue or ` 1,00,000, we higher
27. General Instructions for
Preparation P&L
Now known as ‘Profit and Loss Statement for the year ended
________’.
Exceptional and extraordinary items need to be disclosed
separately on the face of the Statement of Profit and Loss. The
details of the same as also of any prior period items should be
disclosed in the notes.
The items to be disclosed under Revenue from Operations have
been specifically indicated for both finance companies and
others.
Note:- Broad heads shall be decided taking into account the
concept of materiality and presentation of true and fair
view of financial statements,”.
28. Bibliography
Information is taken from different source like :
A Hand Book on XBRL & Revised Schedule
by CCH Publishers
An Accounting Update issued by KPMG
Guidance Note on Revised Schedule
by ICAI
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