1. Applies to all companies following non-converged Indian Accounting Standards
2. No possibility of conflict between Accounting Standard and Schedule VI as on modification of accounting standards prescribed under the companies act, Schedule VI would stand modified accordingly
3. The disclosure requirement of revised Schedule VI are in addition to that required by Accounting Standards prescribed under the companies act
4. All disclosures required by Companies Act to be made in notes to accounts
5. Cross-referencing each line item with notes and vice versa required
6. Unit of measurement selected to used uniformly in financial statements
7. One year comparatives required
8. Classification of all assets and liabilities into current and non-current
9. Definition of current asset and current liability in line with converged Ind AS 1 or IAS 1 10.Nature and purpose of each reserve to be stated only for those aggregated under “Other Reserves”
11. Debit balance of Profit and Loss Account to be shown as negative figure in Surplus
12. Reserve and Surplus balance can be negative
13. Period and amount of continuing default as on the balance sheet date in repayment of loans and interest to be separately specified
14. Dividends proposed to be disclosed
15. Expenses in Statement of Profit and Loss to be classified based on nature of expenses
16. Gain / Loss on foreign currency transaction to be separated into finance costs and other expenses
17. Disclosure of quantitative details of goods diluted
Major differences between the old and the new Sch VI
|
Sr. No. |
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 |
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. |
|
3 |
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. |
|
4 |
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 |
|||
|
5 |
Finance lease obligation |
Finance lease obligations are included in current liabilities |
Finance lease obligations are to be grouped under the head non-current liabilities |
|
6 |
Deposits |
Lease deposits are part of loans & advances |
Lease deposits to be disclosed as long term loans & advances under the head non-current assets |
|
7 |
Investments |
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. |
|
8 |
Loans & 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 & current assets respectively. |
|
Loans & Advance to subsidiaries & others to be disclosed separately. |
Loans & Advance from related parties & others to be disclosed separately. |
||
|
9 |
Deffered 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 |
Cash & Bank Balances |
Bank balance to be bifurcated in scheduled banks & others |
Bank balances in relation to ermarked balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately. |
|
11 |
Profit & Loss |
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. |
|
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 |
Current maturities of long term debt to be disclosed under other current liabilities. |
|
No specific mention for separate disclosure of Current maturities of finance lease obligation |
Current maturities of finance lease obligation to be disclosed. |
||
|
14 |
Separate line item |
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 & translaton. |
|
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 thereof. |
Goods traded in by the company to be disclosed in broad heads in notes. Disclosure of quantitative details of goods is diluted |
major differences between the old and the new Sch VI
|
Sr. No. |
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 |
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. |
|
3 |
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. |
|
4 |
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 |
|||
|
5 |
Finance lease obligation |
Finance lease obligations are included in current liabilities |
Finance lease obligations are to be grouped under the head non-current liabilities |
|
6 |
Deposits |
Lease deposits are part of loans & advances |
Lease deposits to be disclosed as long term loans & advances under the head non-current assets |
|
7 |
Investments |
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. |
|
8 |
Loans & 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 & current assets respectively. |
|
Loans & Advance to subsidiaries & others to be disclosed separately. |
Loans & Advance from related parties & others to be disclosed separately. |
||
|
9 |
Deffered 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 |
Cash & Bank Balances |
Bank balance to be bifurcated in scheduled banks & others |
Bank balances in relation to ermarked balances, held as margin money against borrowings, deposits with more than 12 months maturity, each of these to be shown separately. |
|
11 |
Profit & Loss |
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. |
|
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 |
Current maturities of long term debt to be disclosed under other current liabilities. |
|
No specific mention for separate disclosure of Current maturities of finance lease obligation |
Current maturities of finance lease obligation to be disclosed. |
||
|
14 |
Separate line item |
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 & translaton. |
|
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 thereof. |
Goods traded in by the company to be disclosed in broad heads in notes. Disclosure of quantitative details of goods is diluted |
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Tax Rate, Accounting code, Classification, Valuation, Exemption, and Clarification
