FINANCIAL STATEMENTS AS PER NEW SCHEDULE III ,COMPANY ACT 2013 (BALANCE SHEET AND STATEMENT OF PROFIT AND LOSS)
THE COMPANIES ACT 2013: SCHEDULE IIIThe presentation of financial statements of companies registered under the companies Acts is now governed by schedule III of companies Act 2013.The format is same as per schedule VI of the companies Act 1956.
Identifiable difference from previous format
- only one format has been prescribed in earlier there were two alternatives formats.
- PROFIT AND LOSS ACCOUNT was renamed as STATEMENT OF PROFIT AND LOSS.
- The 'liabilities' side stand was renamed as "Equity and Liabilities"
- In the statement of profit and loss, the threshold level for disclosure of expenditure items has increased from Rs. 5,000 to Rs. 1,00,000.
- remaining changes are very minute.
FOLLOWING IS THE FORMAT OF BALANCE SHEET AS PER SCHEDULE III
BALANCE SHEET - CURRENT AND NON-CURRENT CLASSIFICATION
- The classification of line items in balance sheet is divided in two categories-(i)'Equity and Liabilities'(ii) 'Assets'
- An asset is classified as a current asset when it satisfies following conditions:
2) It is expected realised with in normal operating cycle.
3) It is held primarily for the purpose of being traded or sale.
All assets other than current assets are treated as non-current assets.
FOLLOWING IS THE FORMAT OF STATEMENT OF PROFIT AND LOSS
Break up of items of revenue , purchase:-
- Break up of each of the following items into broad heads shall be given
1) Revenue from sale of goods.
2) Gross income from services rendered.
- In case of Purchase
1) Raw material consumed
2) Purchase of stock in trade
3) Work in progress
- General requirements for separate disclosure
Any item of income or expenditure which exceeds one percent of the revenue from operations or Rs.1,00,000/- which ever is higher shall be disclosed separately.