hello everyone,
can you let me know, where can I get guidance on short term and long bifurcation of assets and liabilities in schedu
le III.
Early response you will be highly appreciated.
Thanks in advance!!
2 Replies
CA Salman Ansari
(Salman Ansari & Assoc.)
(247 Points)
Replied 27 June 2019
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’.
Based on the above definition, on the face of the Balance Sheet, the following items shall be disclosed under non-current assets: -
(a) Fixed Assets
(i) Tangible assets;
(ii) Intangible assets;
(iii) Capital work-in-progress;
(iv) Intangible assets under development
(b) Non-current investments
(c) Deferred tax assets (net)
(d) Long-term loans and advances
(e) Other non-current assets
Source: https://kb.icai.org/pdfs/PDFFile5b27859a90bfc7.83429474.pdf
(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’.
Based on the above definition, on the face of the Balance Sheet, the following items shall be disclosed under non-current assets: -
(a) Fixed Assets
(i) Tangible assets;
(ii) Intangible assets;
(iii) Capital work-in-progress;
(iv) Intangible assets under development
(b) Non-current investments
(c) Deferred tax assets (net)
(d) Long-term loans and advances
(e) Other non-current assets
Source: https://kb.icai.org/pdfs/PDFFile5b27859a90bfc7.83429474.pdf
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