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Miscellaneous expenditure not written off

work is worship (Service) (2728 Points)

02 July 2012

Please advise in balance sheet where can i disclose " Miscellaneous Expenditure to the extent not written off" . The new schedule is not clear on this.

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Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 02 July 2012

In Non-current Assets

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MOHIT MATHURAN (STUDENT) (334 Points)
Replied 02 July 2012

The portion of the expense which is to be wrriten off in the next year should be trf to - OTHER CURRENT ASSETS .& the balance Amount should be transfer to - OTHER NON- CURRENT ASSETS

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work is worship (Service) (2728 Points)
Replied 03 July 2012

Thanks for the response, further i had discussed this with one of my ex senior and this was his response to it..

Please note the Guidence note issued by ICAI on revised Sch VI. "The Revised Schedule VI does not contain any specific disclosure requirement for the unamortized portion of expense items such as share issue expenses, ancillary borrowing costs and discount or premium relating to borrowings. The Old Schedule VI required these items to be included under the head “Miscellaneous Expenditure.” As per AS 16 Borrowing Costs ancillary borrowing costs and discount or premium relating to borrowings could be amortized over the loan period. Further, share issue expenses, discount on shares, ancillary costs-discountpremium on borrowing, etc., being special nature items are excluded from the scope of AS 26 Intangible Assets (Para 5). Based on this views, certain companies have taken a stand that it is an acceptable practice to amortize these expenses over the period of benefit, i.e., normally 3 to 5 years.

The Revised Schedule VI does not deal with any accounting treatment and the same continues to be governed by the respective Accounting Standardspractices. However, the Revised Schedule VI is clear that additional line items can be added on the face or in the notes. Keeping this in view,entity can disclose the unamortized portion of such expenses as “Unamortized expenses”, under the head “other current non-current assets”,depending on whether the amount will be amortized in the next 12 months or thereafter."