3. •Classification in old schedule VI was not in line with the disclosure
requirements under AS. The disclosure requirements of old schedule VI on
the face of balance sheet were insufficient.
For example: as per AS 22 deferred tax asset/liabilities should be disclosed
under separate heading in the balance sheet, separately from current
asset/liabilities i.e. under “non current asset” or “non current liabilities”. This
classification was not provided in old schedule VI
4. •No specific format for Profit and Loss account under old schedule VI
•Measurement principle under old schedule VI was not in line with
Accounting Standards
For example: as per AS 11 any exchange difference in foreign currency
translation is to be charged/recognized in Profit and Loss account, whereas
as per old schedule VI such exchange difference should be capitalized.
•Old schedule VI was not compatible with International Accounting
Standards.
7. •All assets and liabilities are classified into current and non-current.
Classification of liabilities into secured and unsecured heading as given in
old schedule VI is now to be given in notes to Accounts as a line item
•Old schedule VI Revised schedule VI
Sundry creditors Trade Payables
Sundry debtors Trade Receivables
•Trade Payables, Trade Receivables and provisions are further classified as
long term (non-current) item and short term (current) item.
8. •Trade Receivables will include only the amount due on account of goods
sold or services rendered in normal course of business. Other receivables
will be shown under the heading “Other current assets”.
•Trade Payables will include only the amount due on account of goods sold
or services received in normal course of business. Other payables will be
shown under the heading “Other current liabilities”.
10. •All details regarding share capital to be shown in the notes to accounts.
•Loss from Profit and Loss account will be shown under the head Reserve
and surplus as a negative figure.
•Balance of reserve and surplus may be in negative.
12. •Any item of income or expense which exceeds one percent of the revenue
from operation or Rs. 100000 whichever is less is to be disclosed separately.
•Net gain or loss on foreign currency transaction/translation related to finance
cost and net gain or loss on others should be separately disclosed.
•The requirements of disclosures in respect of quantity of inventories is
dispensed with.
14. •For companies having turnover of less than 100 crore rupees, the figures
appearing in the financial statements may be rounded off to nearest
hundreds, thousands, lakhs or millions, or decimals thereof.
•For companies having turnover of more than 100 crore rupees, the figures
appearing in the financial statements may be rounded off to nearest lakhs,
millions, or crores or decimals thereof.
•Once a unit of measurement is used, it should be used uniformly in the
financial statements.
15. IF YOU HAVE ANY SUGGESTION, OPINION OR FEEDBACK
PLEASE FEEL FREE TO WRITE US AT
roshankumar.2007@rediffmail.com
