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Revised schedule vi

ANJALI NEGI (Chartered Accountant) (1263 Points)

20 November 2012

Hello Frnds,

Where to classify the proposed dividend as per revised schedule vi?????

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CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 20 November 2012

The Old Schedule VI specifically required proposed dividend to be disclosed under the head “Provisions.” In the Revised Schedule VI, this needs to be disclosed in the notes.

Regards,

RAJESH CHOUDHARY

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ANJALI NEGI (Chartered Accountant) (1263 Points)
Replied 20 November 2012

Dear Rajesh...I think it is to be classified under the sub head Current provisions under the head Current liabilities...am i right...Do correct if nt???

Vikas Prajapati (CA) (249 Points)
Replied 20 November 2012

Hie,

Please see the following discussion, it will help you.

/experts/proposed-dividend-in-revised-schedule-vi-1023274.asp#.UKs8F2cko40

Deepak Gupta (CA Student) (15922 Points)
Replied 20 November 2012

Proposed Dividend shall be shown as an –

> Appropriation Items under Reserves and Surplus,

> Provisions in the Balance Sheet,

> Disclosure in the Notes on Accounts.

.
Refer Para 8.8.7.7 of the ICAI Guidance Note on Rev. Schedule VI

8.8.7.7 The Revised Schedule VI requires disclosure of the amount of dividends proposed to be distributed to equity and preference shareholders for the period and the related amount per share to be disclosed separately. It also requires separate disclosure of the arrears of fixed cumulative dividends on preference shares. The Old Schedule VI specifically required proposed dividend to be disclosed under the head “Provisions.” In the Revised Schedule VI, this needs to be disclosed in the notes. Hence, a question that arises is as to whether this means that proposed dividend is not required to be provided for when applying the Revised Schedule VI. AS-4 Contingencies and Events Occurring After the Balance Sheet date requires that dividends stated to be in respect of the period covered by the Financial Statements, which are proposed or declared by the enterprise after the Balance Sheet date but before approval of the Financial Statements, should be adjusted. Keeping this in view and the fact that the Accounting Standards override the Revised Schedule VI, companies will have to continue to create a provision for dividends in respect of the period covered by the Financial Statements and disclose the same as a provision in the Balance Sheet, unless AS-4 is revised. Hence, the disclosure to be made in the notes is over and above the disclosures pertaining to a) the appropriation items to be disclosed under Reserves and Surplus and b) Provisions in the Balance Sheet.