Disclosure of debtor

This query is : Resolved

Vishnu Bargoti (Querist)
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19 April 2012 If a debtor is standing in books from 2 years than how to disclose in balance sheet as per revised schedule vi.

Mihir Doshi

Mihir Doshi (Expert)
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19 April 2012 Dear Vishnu,

Revised Schedule VI has divided the assets and liabilities into two parts: current and non current

Current Asset:
“An asset shall be classified as current when it satisfies any of the
following criteria:
(a) it is expected to be realized in, or is intended for sale or consumption
in, the company’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realized within twelve months after the reporting
date; or
(d) it is Cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months after
the reporting date.
All other assets shall be classified as non-current.”

In your case, it seems debtors are outstanding for more than 12 months (2 years old) so we could classify the same as non current assets.(Assumed that all other debtors are realised within 12 months from the financial closing date)

Thanks
Mihir Doshi

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CA Kishore Tallam

CA Kishore Tallam (Expert)
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19 April 2012 Classification in Revised Schedule VI does not depend on how much period is outstanding rather than on within how much period, it will be realised.
If u r sure enough that the amount will be realised within 12 months or operating cycle, then group the same in Trade Receivable under current assets, else group it under other non current assets.

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