CPT V24P7-Art1 (Content).pmd - Taxmann

Disclosure of
Borrowings under
Revised Schedule VI
INTRODUCTION
ACCOUNTS & AUDIT
CA VINAYAK PAI V
1. Revised schedule VI is a qualitative improvement in presentation and disclosure
requirements of financial statements. While India still does not have a mandated
accounting standard for accounting of financial liabilities, disclosures in the area
of borrowings have been improved to a great extent under revised Schedule
VI vis-à-vis its predecessor version.
This article analyses the key requirements of the revised Schedule VI with respect
to disclosures of borrowings, relevant guidance provided by the Institute of
Chartered Accountants of India (ICAI) on revised Schedule VI implementation
by way of a Guidance Note and an FAQ statement and case studies from
published financial statements.
REVISED SCHEDULE VI REQUIREMENTS
2. Borrowings are required to be presented under three broad categories in the
balance sheet under revised Schedule VI as follows:
Non-current liabilities Long-term borrowings
Current liabilities Short-term borrowings
Other current liabilities
The requirements of Schedule VI with respect to disclosure of borrowings is
discussed hereinbelow.
August 1 to 15, 2012 u TAXMANN’S CORPORATE PROFESSIONALS TODAY u Vol. 24 u 81
701