Sl. | Particulars | Old Schedule VI | Revised Schedule VI |
1 | Rounding off of Figures appearing in financial statement | Turnover of less than Rs. 100 Crs - R/off to the nearest Hundreds, thousands or decimal thereof, Turnover of Rs. 100 Crs or more but less than Rs. 500 Crs - R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof, Turnover of Rs. 500 Crs or more - R/off to the nearest Hundreds, thousands, lakhs, millions or crores, or decimal thereof | Turnover of less than Rs. 100 Crs - R/off to the nearest Hundreds, thousands, lakhs or millions or decimal thereof, Turnover of Rs. 100 Crs or more - R/off to the nearest lakhs, millions or crores, or decimal thereof. |
2 | Fixed Assets | There was no bifurcation required in to tangible & intangible assets. | Fixed assets to be shown under non-current assets and it has to be bifurcated in to Tangible & intangible assets. |
3 | Investments | Both current & non-current investments to be disclosed under the head investments | Current and non-current investments are to be disclosed separately under current assets & non-current assets respectively. |
4 | Deposits | Lease deposits are part of loans & advances | Lease deposits to be disclosed as long term loans & advances under the head non-current assets |
5 | Net Working Capital | Current assets & Liabilities are shown together under application of funds. The net working capital appears on balance sheet. | Assets & Liabilities are to be bifurcated in to current & Non-current and to be shown separately. Hence, net working capital will not be appearing in Balance sheet. |
6 | Loans & Advances | Loans & Advance are disclosed along with current assets Loans & Advance to subsidiaries & others to be disclosed separately. | Loans & Advances to be broken up in long term & short term and to be disclosed under non-current & current assets respectively. Loans & Advance from related parties & others to be disclosed separately. |
7 | Cash & Bank Balances | 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 of these to be shown separately. |
8 | Profit & Loss (Dr Balance) | P&L debit balance to be 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. |
9 | Deferred Tax Assets / Liabilities | Deferred Tax assets / liabilities to be disclosed separately. | Deferred Tax assets / liabilities to be disclosed under non-current assets / liabilities as the case may be. |
10 | Borrowings | 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 with separate disclosure of secured / unsecured loans. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified |
11 | Finance lease obligation | Finance lease obligations are included in current liabilities | Finance lease obligations are to be grouped under the head non-current liabilities |
12 | Sundry Creditors | Creditors to be broken up in to micro & small suppliers and other creditors. | It is named as Trade payables and there is no mention of micro & small enterprise disclosure. |
13 | Other current liabilities | No specific mention for separate disclosure of Current maturities of long term debt. No specific mention for separate disclosure of Current maturities of finance lease obligation | Current maturities of long term debt to be disclosed under other current liabilities. Current maturities of finance lease obligation to be disclosed. |
14 | Separate line item Disclosure criteria | any item under which expense exceeds one per cent of the total revenue of the company or Rs. 5,000 which ever is higher; shall be disclosed separately | any item of income / expense which exceeds one per cent of the revenue from operations or Rs. 1,00,000, which ever is higher; to be disclosed separately |
15 | Expense classification | Function wise & nature wise | Expenses in Statement of Profit and Loss to be classified based on nature of expenses |
16 | Finance 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 currency transaction & translation. |
17 | Foreign exchange gain / loss | Gain/Loss on foreign currency transaction to be shown under finance cost. | Gain / Loss on foreign currency transaction to be separated into finance costs and other expenses. |
18 | Purchases | The purchase made and the opening & closing stock, giving break up in respect of each class of goods traded in by the company and indicating the quantities | Goods traded in by the company to be disclosed in broad heads in notes. Disclosure of quantitative details of goods is diluted. |
By:- Rohit Muchhal (CA Final, Kolkata)
Get in touch with me @ rohitmuchhal90@gmail.com
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