Important aspects of Revised Schedule VI

IMPORTANT ASPECTS
Some of the significant aspects of the revised Schedule VI include :
  1. Applicable to all : The revised Schedule to apply to all companies following Indian GAAP–until such companies are required to follow International Financial Reporting Standards (IFRS) converged Indian accounting standards (Ind AS).
  2. Accounting Standards Override : Accounting standards and requirements of the Act to override the requirements of the revised Schedule, wherever the two are inconsistent.
  3. Broad Items : Information to be mandatorily presented on the face of financial statements limited to only broad and significant items – details by way of notes.
  4. Part IV Dispensed with : Part IV of the existing Schedule (giving balance sheet abstract and general business profile) dispensed with.
  5. No Change in Cash Flow : Format of cash flow statement not prescribed – hence companies which are required to present this statement (i.e. other than small and medium sized companies) to continue to prepare it as per AS 3, Cash Flow Statement.
  6. Compliance with Accounting Standards : Disclosure requirements of various accounting standards also need to be complied with.