Where to show the Unpaid Salary or other unpaid Employee's benefit exps, I have confusion wheather to show under Other Current liabilities or under Short term provisions.
Please clarify, thanks in Advance
Saurabh Maheshwari (B.com,ACA) (5923 Points)
04 August 2012Where to show the Unpaid Salary or other unpaid Employee's benefit exps, I have confusion wheather to show under Other Current liabilities or under Short term provisions.
Please clarify, thanks in Advance
S Gupta
(Finance Manager)
(92 Points)
Replied 04 August 2012
Hi Saurabh,
the same should grouped under other liabilities as employee related liabilites.
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 04 August 2012
1) O/S salary to employee would be shown under sub-heading other current liability in heading current liability.if is payable within 12 month from balance sheet date.otherwise in other long term liability.
2) Employee related benefit needs to be bifurcated in current & non current liability by taking the assistance of acturary.& Accordingly provision related to current is provided in Short term provision & provision related to non-current is provided in long term provision.
Regards
CA Linesh Patil
varun
(article)
(26 Points)
Replied 04 August 2012
CRASH COURSES FOR NOV-12 FINAL CA. BY PROFESSIONAL ACADEMY
REVISED SCHEDULE VI - PRASAD SIR
FROM 17TH AUG TO 18TH AUG
TIMING 9AM TO 6PM..
Gunjan Tulsyan
(Article)
(222 Points)
Replied 05 August 2012
The unpaid salary of the employee will be shown in other current liability and the employee benefit expenses will be shown in provisions short or long term depending upon the case...!!!! hope ur query is resolved
vibhor
(Practising C.A.)
(257 Points)
Replied 05 August 2012
My query is:
Do we have to redraft the Balance Sheet P&L A/c of previous year also as per the Revised Schedule VI Format?
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 05 August 2012
Yes, Vibhor you need to re-state the B/s of Previous yr also as per Revised Schedule Vi, the logic is that the Financial Statements can be comparable when presented together....
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
