features
SALIENT FEATURES OF THE GN ON REVISED SCHEDULE VI ISSUED BY ICAI
The ICAI had earlier issued Statement on the Amendment to Schedule VI to the Companies Act, 1956 in March 1976 (as amended). Whenever guidance provided in this publication is different form the guidance in the aforesaid statement, this Guidance Note will prevail.
The corresponding amounts for the immediately preceding period are to be disclosed in the financial statements including the Notes to Accounts
The Profit & loss account should be named as “Statement of Profit and Loss”
In respect of companies other than finance companies, revenue from operations need to be disclosed separately as revenue from
a) Sale of products
b) Sale of services
c) Other operating revenues
Cash is defined as cash in hand and demand deposits with banks.
Cash equivalents are defined as short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. The standard further explains that an investment normally qualifies as a cash equivalent only when it has a short maturity of three months or less from the date of acquisition.
An illustrative list of disclosures required under the act is enclosed (Pg 151)
BALANCE SHEET
I LIABILITIES:
Share Capital:
As per old schedule VI, debit balance on the allotment or call account is presented in the Balance Sheet not as an asset but by way of deduction from Called-up capital. However, as required by Clause K of Note 6A of the Revised Schedule VI, calls unpaid are to be disclosed separately as per Revised Schedule VI.
Clause d of Note 6A – a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period to be given. Reconciliation for the comparative previous period is also to be given.
Number of share holder holding more than 5% shares specifying the number of shares held – should be given for the comparative previous period
The ICAI had earlier issued Statement on the Amendment to Schedule VI to the Companies Act, 1956 in March 1976 (as amended). Whenever guidance provided in this publication is different form the guidance in the aforesaid statement, this Guidance Note will prevail.
The corresponding amounts for the immediately preceding period are to be disclosed in the financial statements including the Notes to Accounts
The Profit & loss account should be named as “Statement of Profit and Loss”
In respect of companies other than finance companies, revenue from operations need to be disclosed separately as revenue from
a) Sale of products
b) Sale of services
c) Other operating revenues
Cash is defined as cash in hand and demand deposits with banks.
Cash equivalents are defined as short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. The standard further explains that an investment normally qualifies as a cash equivalent only when it has a short maturity of three months or less from the date of acquisition.
An illustrative list of disclosures required under the act is enclosed (Pg 151)
BALANCE SHEET
I LIABILITIES:
Share Capital:
As per old schedule VI, debit balance on the allotment or call account is presented in the Balance Sheet not as an asset but by way of deduction from Called-up capital. However, as required by Clause K of Note 6A of the Revised Schedule VI, calls unpaid are to be disclosed separately as per Revised Schedule VI.
Clause d of Note 6A – a reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period to be given. Reconciliation for the comparative previous period is also to be given.
Number of share holder holding more than 5% shares specifying the number of shares held – should be given for the comparative previous period