New Changes in Revised Scheduled VI

New Revised SCH VI 

The changes brought out in the financial reporting through the Revised Schedule VI cannot be considered as a simple exercise of representation of numbers in a different format, but requires careful consideration of various factors duly reflecting the business considerations and the investor expectations. In this process, there are bound to be various challenges and implementation issues and hence would naturally lead to enhanced learning/experience.

These are revised changes:

1. Many of the old disclosures have been dispensed off like
   1. Quantitative details
   2. Maximum amount due from director/managers
   3. Balance with non-scheduled banks, etc.
2. No more netting of current assets and current liabilities. Liabilities are to be reported in the Liabilities side and the Assets in the Assets side.
3. All assets and liabilities to be split between current and non-current except
   1. Shareholders funds
   2. Fixed Assets
4. Each sub item in the Balance Sheet and Profit and Loss to have a note number and any additional disclosure based on accounting standard to be reported.
5. Profit/Loss has to necessarily be reported under Liabilities side only
6. Each line and sub line in the BS and PL need to be in the prescribed order
7. No horizontal format for the balance sheet
8. No more schedules to balance sheet
9. Profit and Loss account renamed to Statement of Profit and Loss
10. Revenue from operations to be reported and all other incomes to be reported as other income
11. Many new disclosures have been included
    1. Reconciliation of shares
    2. Rights, restrictions and preferences attached to each class of shares
    3. Cash and cash equivalents
12. Disclosures are now governed by the accounting standards and any inconsistency between accounting standard and revised schedule VI. Accounting standard shall prevail.