PAIDI BHAIRAVA PRASAD REDDY (CA(Final) CS(Executive).) (55 Points)
03 December 2012Can i know what will be discloeure procedore for pror period item and extra ordinary item in Stament of profit and loss account along with any practical examples of annual report of any companies.
Deepak Gupta
(CA Student)
(15922 Points)
Replied 03 December 2012
The term ‘Prior period Items’ is not defined in Revised Schedule VI.
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AS-5 requires that the nature and amount of prior period items should be separately disclosed in the statement of profit and loss in a manner that their impact on the current profit and loss can be perceived.
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Accordingly, a company may disclose prior period items, if any, as a separate line item on the face of the statement of profit and loss.
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Alternatively, it may include the same in other line items of the statement of profit and loss with a relevant disclosure, eg. employee benefit expenses (including prior period Rs. XX)
The term ‘Extraordinary items’ is not defined in Revised Schedule VI.
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Para 8 of AS-5 discusses about the disclosure of extraordinary items as below:
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Extraordinary items should be disclosed in the Statement of Profit and Loss as a part of net profit or loss for the period. The nature and the amount of each extraordinary item should be separately disclosed in the Statement of Profit and Loss in a manner that its impact on current profit or loss can be perceived.”
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In case the company has more than one such item of income / expense of the above nature, the aggregate of such items should be disclosed on the face of the Statement of Profit and Loss. Details of the all individual items should be disclosed in the Notes.
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