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Revised schedule vi-doubt-ipcc-nov 2012

Vinitha (CA Final;MCom) (602 Points)

26 October 2012

I m giving my IPCC grp-2 attempt this November.I had studied all the chap of Adv. A/c as per old format.I had a doubt if B/s to be prepared as per Revised Schedule VI for Electricity,Insurance & Banking Company?As per RTP in Electricity Revised schedule VI is followed,but the Question had specifically asked for the same..What is to be done if nothing has been specified??What is to be done in case of banking,Please reply as soon as possible.. Please help....

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8 Replies

Anil Manwani (Articled Assistant) (60 Points)
Replied 26 October 2012

As far as i know, Revised schedule VI is not applicable to Banking, Electricity & Insurance companies, as the format of financials of these companies is governed by their respective statute, So if in case the question comes u can give the same note & then solve the question as per the format of the Banking/Electricity/Insurance company.

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CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 26 October 2012

Dear Vinitha & Anil,

Chapters effected in IPCC are Amalgamation, Reconstruction, Financial Statements of Companies, Buy Back, Redemption of debentures, Financial Statements of Electricity Companies and Profit or Loss Prior to Incorporation. Please refer latest study material published by ICAI in ICAI website. Revised schedule VI is applicable for Nov 2012 exams.

All the Best,

Regards,

RAJESH CHOUDHARY

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Anil Manwani (Articled Assistant) (60 Points)
Replied 27 October 2012

Agreed with rajesh,

Revised schedule VI is Applicable on electricity companies to the extend it is not contrary to requirements of electricity act,

(refer Para 1.2 & 1.3 of final guidance note on revised schedule VI by ICAI)

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Sourabh (Student) (360 Points)
Replied 27 October 2012

please tell whether Revised Schedule VI is applicable for departmental n branch acc*nts.companies can hv branches n departments. also conversion of partnership into company?

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 28 October 2012

Originally posted by : Sourabh
	please tell whether Revised Schedule VI is applicable for departmental n branch acc*nts.companies can hv branches n departments. also conversion of partnership into company?

I have verified the updated institute material. In that they have provided the balance sheets of branch and departmental accounts in old schedule VI.

The reason being is they are not companies and Revised Schedule VI is applicable only for companies.

Wish you all the Best.

Regards,

RAJESH CHOUDHARY

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Vinitha (CA Final;MCom) (602 Points)
Replied 28 October 2012

So sir will the format of making financial statement for Electricity company fully change??as in case of the old format we used to carry the balances from different Statements such as statement of share and loan capital,St. of Capital Expenditure etc..I think then B/s would be prepared as per revised schedule and all the others will be shown as notes to Accounts..But what about the P& L A/c..i.e Statement of operating Revenue,Expenses etc..will there be a change in the same..How is the same to be accounted..kindly Guide me..

And also the format for making Financial statement for Insurance and banking would remain the same na??Sorry but im bit tensed & confused as the dates r approaching near...

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 28 October 2012

Don't worry Vinitha,

Revised Schedule VI is applicable to the following chapters for sure and applies to both B/s, P/L:

1. Amalgamation of Companies (covered in Group-I & II)

2. Internal Reconstruction of Companies

3. Buy-back of Shares

4. Electricity Companies

There will be No change in Insurance and Departmental, and Branch...

In my view, they are not applicable because in the revision test papers of icai applicable for nov 2012 exams, the problems relating to the chapters as you asked were not prepared as per RS VI.

Hence, in my view they are not applicable for those chapters.

Wish you all the very Best

Regards,

RAJESH CHOUDHARY

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vipul jain (EFFORTS NEVER FAIL) (2894 Points)
Replied 30 October 2012

As such, u/s 211(1) & (2), Schedule VI(R) is Not applicable to any Insurance/Banking/Electricity Companies...

However, for Companies engaged in the generation and supply of Electricity, there is no prescribed format for presentation of Financial Statements, either in the Electricity Act, 2003, or the Rules framed thereunder..

Sec. 616(c) states that the Companies Act will apply to Elect Companies, to the extent it is not contrary to the requirements of the Electricity Act. Conclusion-->> Schedule VI(R) may be followed by Electricity Companies till the time any other format is prescribed by the relevant statute..

For Nov. 12 Exam-->> Follow RTP....Adv Acc me ek ques h elect co ka ....jo ICAI ne New format i.e. Schedule VI(R) se solve kiya h....so follow RTP.... wish u ol d best:-)

Thanks & Regards

Vipul Jain

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