A Practical Guide To Ridshdlvi Revised Schedule Vi

APracticalGuideto RevisedScheduleVI R i d S h d l VI
Comparison:OldandNew ScheduleVI
2012Authors All rights reserved. No part of this work covered by the copyright owners may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying, recording, recording taping, or information retrieval systems) without the written permission of the publisher and copyright owners. APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah
2012Authors
APracticalGuidetoRevisedScheduleVI
1. Introduction QuickLinks
1. ComparisonbetweenOldandRevised ScheduleVI:Synopsis
2. 2 Comparison Old & revised Schedule VI
2. 2
Majordifferences oldandrevisedcontent Major differences old and revised content ofSchedule VI
3.
Additionaldisclosurerequirements specifiedunderrevisedScheduleVI ifi d d i d S h d l VI
4.
Disclosurereq.dispensedwithunder revisedScheduleVI
5.
Presentationofdisclosureshasundergone changeunderrevisedScheduleVI
APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah
2012Authors
Introduction
Schedule VI notified by as per Notification No.653 (E) dated March 30, 2011 has come into force for the Balance Sheet and Profit and Loss Account to be prepared for the financial year commencing on or after 142011 in accordance with old accounting standards. With this reform in accounting world, now the financial transactions will be brought to the notice of all the stake holders in a better presentation broadly in line with international presentation as compared to conventional statements of p p balance sheet and profit and loss account in old Schedule VI. This presentation is developed to give the user a basic comparison between old and revised Schedule VI.
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Comparisonbetweenoldandrevised b ld d d ScheduleVI
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Comparison oldandrevisedcontentofScheduleVI
Synopsis: MajordifferencesbetweenoldandnewScheduleVI AreaswhereadditionalguidancehasbeenprovidedinrevisedScheduleVI Areas where additional guidance has been provided in revised Schedule VI oradditionaldisclosurerequirementshavebeenspecified AreaswheredisclosureswererequiredbyoldScheduleVIbutthose Areas where disclosures were required by old Schedule VI but those requirementshavebeendispensedwithintherevisedScheduleVI Areaswherepresentationand/ordisclosuresmannerhasundergonea Areas where presentation and/or disclosures manner has undergone a changeintherevisedScheduleVI
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Majordifferences:Oldandrevised d ff ld d d ScheduleVI
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MajorDifferences:Parameters OldScheduleVI NewScheduleVI
Comprisedof: Part1:BalanceSheet Part2:P/LossAccount Part 2: P/Loss Account Part3:Interpretations Part4:B/SAbstract andCompanys GeneralBusiness Profile
Comprisesof: Part1:BalanceSheet Part2:Statementof ProfitandLoss
Major Difference Parameters

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Silentontheissueof Silent on the issue of whethertheSchedule VIoverridesthe accountingstandards.
Itaddressestheissue byclearlyproviding thattheaccounting h h standardswill overrideScheduleVI. ThusASprevailover ScheduleVI. h d l
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Bothhorizontaland verticalformat permitted.
Onlyverticalformat permissible.
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Noprescribedformat forProfitandLoss Account.Only minimum minimum requirementswere specified.
FormatofProfitand Lossaccountis prescribed.
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Guidanceon presentationofnotesto g accountsgivenin additiontoinformation presentedinthe financialstatements.It shallprovidewherever required; (a)narrativedescriptions ordisaggregations of itemsrecognisedin thosestatementsand(b) those statements and (b) informationaboutitems thatdonotqualifyfor recognitioninthose statements.
Noguidanceon No guidance on presentationofnotes totheaccounts.
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Areaswhereadditionaldisclosure Areas where additional disclosure requirementsspecifiedasperrevised ScheduleVI Schedule VI
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AreaswhereadditionaldisclosurerequirementsspecifiedasperrevisedScheduleVI Areas where additional disclosure requirements specified as per revised Schedule VI
Shareholders funds Share application moneypending allotment Current& Noncurrent classification Borrowings Bonds& Debentures Fixed assets Intangible assets Cashandcash equivalents
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Share application Shareholders moneypending funds allotment Current& Noncurrent classification Borrowings Bonds& Debentures Fixed assets Intangible assets Cashandcash equivalents
Item
Disclosure of reconciliation of no. of shares outstanding at beginning and end of reporting period Disclosureofrights,preferencesandrestrictionsattaching Di l f i h f d i i hi toeachclassofsharesincludingrestrictionson distributionofdividendsandrepaymentofcapital Disclosureofsharesincompanyheldbyeachshareholder holdingmorethan5%sharesspecifyingno.ofshares held Callsunpaid Disclosureofthesharesreservedforissueunderoptions Disclosure of the shares reserved for issue under options andcontracts/commitmentsforsaleofshares/ disinvestment,includingtermsandamounts Shareoptionsoutstanding
Moneyreceivedagainstsharewarrants
OldScheduleVI
Notrequired Notrequired
RevisedScheduleVI
Separatedisclosurerequiredfor eachclassofsharecapital Separatedisclosurerequiredfor eachclassofsharecapital Separatedisclosurerequiredfor eachclassofsharecapital each class of share capital Callsunpaid(showingaggregate valueofcallsunpaidbydirectors andofficers)tobedisclosed Separatedisclosurerequiredfor eachclassofsharecapital Requiresseparatedisclosureunder headReservesandSurplus. d l d / SeparatedisclosurerequiredinB/S underheadShareholdersFunds.
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Notrequired Callsunpaidbydirectorstobe disclosed Onlyparticularsforany Only particulars for any optiononunissuedshare capitaltobedisclosed Noguidance Noguidance
Shareholders funds
Share Current& application Noncurrent moneypending classification allotment
Borrowings
Bonds& Debentures
Fixed assets
Intangible assets
Cashandcash equivalents
Item
OldScheduleVI
RevisedScheduleVI
Shareapplicationmoneypendingallotment(not dueforrefund)istobeshownasaseparateline iteminB/S.Thisitemtobedisclosedasa i i B/S Thi i b di l d separateheadbetweenShareholdersFunds andNonCurrentLiabilities
Shareapplicationmoneypendingallotment Sh li i di ll
Noguidance N id
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Shareholders funds Share application moneypending allotment Current& Noncurrent classification Borrowings Bonds& Debentures Fixed assets Intangible assets Cashandcash equivalents
Item
OldScheduleVI
Required.
RevisedScheduleVI
A liability is classified as current when it satisfies any of the following criteria:
Currentandnon current classificationof liabilities
(a) it is expected to be settled in companys normal operating cycle;
Notrequired
(b) it is held primarily for the purpose of being traded; (c) it is due to be settled within twelve months after the reporting date; or (d) company does not have an unconditional right to defer settlement of liability for at least 12 months after reporting date. p g All other liabilities are classified as noncurrent.
Requires a clear bifurcation of assets into current and noncurrent.

An asset is classified as current when it satisfies any of the following criteria: Currentandnon Current and non current classificationof assets (a) it is expected to be realized in, or is intended for sale or consumption in, companys normal operating cycle; l i l (b) it is held primarily for the purpose of being traded; (c) it is expected to be realized within 12 months after reporting date; or (d)itiscashorcashequivalentunlessitisrestrictedfrombeingexchangedorusedtosettle aliabilityforatleast12monthsafterreportingdate. Allotherassetsareclassifiedasnoncurrent.
Requirescurrentassetsand R i d loansandadvancestobe shownseparately.
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Shareholders funds Share application moneypending allotment Current& Noncurrent classification Bonds& Debentures Fixed assets Intangible assets Cashandcash equivalents
Borrowings
Item
OldScheduleVI
RevisedScheduleVI
Required. Disclosureofdefaultsin Notrequired caseofborrowings To be specified separately in each case of both Long and Short term borrowings for period and amount of continuing default as on the B/S date in repayment of loans and interest.
Loansandadvances fromrelatedparties
Separateclassification notrequired
Required. Separate classification under head Long term borrowings or Short term, borrowings, as the case may be
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Shareholders funds Share application moneypending allotment Current& Noncurrent classification Borrowings
Bonds& Debentures
Fixed assets
Intangible assets
Item
Disclosureof Disclosure of Bonds/debentures(alongwith ROIandparticularsof redemptionorconversion)
OldScheduleVI
RevisedScheduleVI
Bonds/debentures (along with ROI and particulars of redemption or conversion as the case may be) need to be stated in conversion, descending order of maturity or conversion, starting from farthest redemption or conversion date, as the case may be. Where bonds/debentures are redeemable by instalments, maturity date is the first instalment date becomes due.
Notrequired
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Shareholders funds Share application moneypending allotment Current& Noncurrent classification Borrowings Bonds& Debentures
Fixed assets
Intangible assets
Item
OldScheduleVI
RevisedScheduleVI
Disclosureofimpactofacquisitionsthroughbusiness Disclosure of impact of acquisitions through business combinationsandimpairment(orreversalthereof)
Notrequired
Required
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Shareholders funds Share application moneypending allotment Current& Noncurrent classification Borrowings Bonds& Debentures Fixed assets
Intangible assets
Item
OldScheduleVI
(a) Goodwill. (b) Brands /trademarks. (c) Computer software.
RevisedScheduleVI
Intangible assets to be classified as under:
Classificationof Noguidanceonclassification intangible g ofintangibleassets f i t ibl t assets
(d) Mastheads and publishing titles. (e) Mining rights. (f) Copyrights, and patents and other intellectual property rights, services and operating rights. (g) Recipes, formulae, models, designs and prototypes. (h) Licenses and franchise. (i) Others (specify nature) nature).
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Shareholders funds Share application moneypending allotment Current& Noncurrent classification Borrowings Bonds& Debentures Fixed assets Intangible assets
Cashand cash equivalents
Item
Disclosureofchequesanddraftsonhand Disclosure of cheques and drafts on hand
OldScheduleVI
Notrequired Not required Required
RevisedScheduleVI
Separatedisclosureofbankbalanceswith Notrequired morethan12monthsmaturity more than 12 months maturity Separatedisclosureofrepatriation restrictions
Required
Notrequired
Required
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Areaswheredisclosurerequirements h d l dispensedwithinrevisedScheduleVI
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AreaswheredisclosurerequirementsdispensedwithinrevisedScheduleVI
Shareholders funds Turnover Incomefrom investment Cash&cash equivalents Interest Income TDS
Openingand closingstockof goods
Quantitative information
Sharecapital andloans
Depreciation
Duesfromdirectors,otherofficers, Duesfromdirectors,otherofficers, companiesundersamemanagement
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Item Sourcesfromwhichbonussharesareissued Disclosureofutilisationofsecuritiespremiumamount
OldScheduleVI Old Schedule VI Required Required
RevisedScheduleVI Revised Schedule VI Notrequired Notrequired
Depreciation
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Item Breakupofturnoverquantitiesandamountsinrespectof eachclassofgoods
OldScheduleVI Old Schedule VI Required
RevisedScheduleVI Revised Schedule VI Notrequired
Depreciation
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Item Bifurcationbetweenincomefromtradeandother investments
Depreciation
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Shareholders funds Turnover Incomefrom investment Cash&Bank Balances Interest Income TDS
Item Separatedisclosureofbankbalanceswithschedulesand nonscheduledbanks
Depreciation
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Item Natureofinterestincome
Depreciation
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Item DisclosureofTDSincaseofgrosspresentationofincome frominvestmentsandinterest
Depreciation
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Item Disclosureincaseofmanufacturingandtradingcompanies foropeningandclosingstockofgoodsproduced/traded givingbreakupandquantities
Depreciation
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Item Disclosureincaseofmanufacturingcompaniesfor quantitativeinformationonlicensed/installedcapacityand actualproduction
Depreciation
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Item Disclosureofamountreservedforrepaymentofloansand sharecapital
Depreciation
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Item Incaseofnonprovisionofdepreciation,disclosureinnotes to accountstothefactthatnodepreciationhasbeen providedalongwithquantumofarrearsofdepreciation calculatedasperSection205(2)oftheCompaniesAct,1956.
Depreciation
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Item Disclosureofmaximumamountduefromdirectorsorother officersduringtheyear Disclosureofduesfromcompaniesunderthesame management
OldScheduleVI Old Schedule VI Required Required
RevisedScheduleVI Revised Schedule VI Notrequired Notrequired
Depreciation
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Areaswherepresentationand/or Areas where presentation and/or disclosureshaschangedinrevised ScheduleVI Schedule VI
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Areaswherepresentationand/ordisclosureshaschangedinrevisedScheduleVI
ShareholdersFunds
Item Disclosureofsharesin respectofeachclassin companyheldbyitsholding companyoritsultimate holdingcompanyincluding holding company including sharesheldbytheir subsidiariesorassociatesof holdingcompany OldScheduleVI Old Schedule VI RevisedScheduleVI Revised Schedule VI
For subsidiary companies separate disclosure of no. of shares held by holding company or Separate disclosure required for each class of share capital. by ultimate holding company and Further the clause: the auditor is not required to certify subsidiaries. correctness of such shareholdings as certified by The auditor is not required to certify management has been removed. correctness of such shareholdings as certified by the management. For each class of shares, following disclosures are required for f period of 5 years i i d f immediately preceding the d di l di h date at which the B/S is prepared: Aggregate no. and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash. Aggregate no. and class of shares allotted as fully paid up by way of bonus shares. Aggregate no. and class of shares bought back. Debit balance of P/L A/c shown as a negative figure under the head Surplus even if the resulting figure is in the Surplus negative.
Disclosureregardingshares allottedforconsideration otherthancash,bonus sharesandsharesbought back
Requiresdisclosureofsharesallottedfor considerationotherthancashandbonus sharesbutnotforsharesboughtback. Further,disclosureneedstobemade withouttherebeingacapof5years
Debitbalanceofprofitand lossaccount
Shownasadeductionfromuncommitted reserves.
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Longterm loansand loans and advances Misc.expenses (notwrittenoff (not written off oradjusted)
Current liabilities
FixedAssets Fixed Assets
Miscellaneous expenses
Dividends
Item Interestaccrued&dueon borrowings
OldScheduleVI Disclosedaspartofsecured/unsecured loansasthecasemaybe
RevisedScheduleVI
Disclosed as current liabilities
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Current liabilities
Dividends
Item Grossandnetblock
OldScheduleVI Requiresdisclosureofgrossaswellasnet block
RevisedScheduleVI
Disclosure of only net block is required
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Current liabilities
Dividends
Item
Capitaladvances
OldScheduleVI Thepracticeistoclubitwithcapitalwork inprogress
RevisedScheduleVI
To be shown separately under the head Long term loans and advances
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Current liabilities
Dividends
Item
Criteriaforseparatedisclosure
OldScheduleVI
Separatedisclosurerequiredforanyitemof expenditurewhichexceedsonepercentofthe p , revenuefromoperationsorRs.5,000 whicheverishigher
RevisedScheduleVI
Separate disclosure required for any item of income or expenditure which exceeds one per cent of the revenue from operations or Rs. 1,00,000, whichever i hi h i 00 000 hi h is higher
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Current liabilities
Dividends
Item
Separatedisclosureinrespect ofmiscellaneousexpenses
OldScheduleVI
Requiredonthefaceofbalancesheet Not required
RevisedScheduleVI
(totheextentnotwritten (to the extent not written offoradjusted)
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Current liabilities
Dividends
Item
Recognitionofdividends declaredbysubsidiaries companies i
OldScheduleVI
Parentcompanyneedtorecognisedividends declaredbysubsidiarycompaniesevenafter thedateofbalancesheetiftheypertaintothe yp periodunderreporting.
RevisedScheduleVI
No such requirement. Thus, dividends will have to be recognised as per the requirements of AS 9 which means that dividends will be recognised only when the right to receive g y g dividends is established.
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ForanyquerieswritetoDr. Sanjeev Singhal. Email:Sanjeev_Singhal@jubl.com
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APracticalGuideto RevisedScheduleVI R i d S h d l VI

2. 2 Comparison Old & revised Schedule VI

Majordifferences oldandrevisedcontent Major differences old and revised content ofSchedule VI

Additionaldisclosurerequirements specifiedunderrevisedScheduleVI ifi d d i d S h d l VI

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Comprisesof: Part1:BalanceSheet Part2:Statementof ProfitandLoss

Major Difference Parameters

Silentontheissueof Silent on the issue of whethertheSchedule VIoverridesthe accountingstandards.

Itaddressestheissue byclearlyproviding thattheaccounting h h standardswill overrideScheduleVI. ThusASprevailover ScheduleVI. h d l

Major Difference Parameters

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Bothhorizontaland verticalformat permitted.

Major Difference Parameters

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Noprescribedformat forProfitandLoss Account.Only minimum minimum requirementswere specified.

FormatofProfitand Lossaccountis prescribed.

Major Difference Parameters

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Noguidanceon No guidance on presentationofnotes totheaccounts.

Major Difference Parameters

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Areaswhereadditionaldisclosure Areas where additional disclosure requirementsspecifiedasperrevised ScheduleVI Schedule VI

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Share Current& application Noncurrent moneypending classification allotment

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Currentandnon current classificationof liabilities

(a) it is expected to be settled in companys normal operating cycle;

Requires a clear bifurcation of assets into current and noncurrent.

Requirescurrentassetsand R i d loansandadvancestobe shownseparately.

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Disclosureofimpactofacquisitionsthroughbusiness Disclosure of impact of acquisitions through business combinationsandimpairment(orreversalthereof)

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Classificationof Noguidanceonclassification intangible g ofintangibleassets f i t ibl t assets

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Cashand cash equivalents

Separatedisclosureofbankbalanceswith Notrequired morethan12monthsmaturity more than 12 months maturity Separatedisclosureofrepatriation restrictions

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Openingand closingstockof goods

Duesfromdirectors,otherofficers, Duesfromdirectors,otherofficers, companiesundersamemanagement

Item Sourcesfromwhichbonussharesareissued Disclosureofutilisationofsecuritiespremiumamount

OldScheduleVI Old Schedule VI Required Required

RevisedScheduleVI Revised Schedule VI Notrequired Notrequired

Openingand closingstockof goods

Duesfromdirectors,otherofficers, Duesfromdirectors,otherofficers, companiesundersamemanagement

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Item Breakupofturnoverquantitiesandamountsinrespectof eachclassofgoods

OldScheduleVI Old Schedule VI Required

RevisedScheduleVI Revised Schedule VI Notrequired

Openingand closingstockof goods

Duesfromdirectors,otherofficers, Duesfromdirectors,otherofficers, companiesundersamemanagement

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Item Bifurcationbetweenincomefromtradeandother investments

OldScheduleVI Old Schedule VI Required

RevisedScheduleVI Revised Schedule VI Notrequired

Openingand closingstockof goods

Duesfromdirectors,otherofficers, Duesfromdirectors,otherofficers, companiesundersamemanagement

APracticalGuidetoRevisedScheduleVI bySanjeev Singhal&R.Sankaraiah

Item Separatedisclosureofbankbalanceswithschedulesand nonscheduledbanks

OldScheduleVI Old Schedule VI Required

RevisedScheduleVI Revised Schedule VI Notrequired