What is long term provisions?

  1. Other Long-term Liabilities
    • Other long term liabilities are required to be sub-classified in the notes as:
    1. Trade payables : Only those amounts due on account of goods purchased or services received in the normal course of business which are non-current would be disclosed here. Acceptances should be classified as Trade payable.
    2. Others. Non-current items such as dues payables in respect of statutory obligations, purchase of fixed assets, contractual obligations, interest accrued on trade payables should be classified as 'others'.
  2. Long Term Provisions
    • Long-term provisions are required to be sub-classified in the notes into : (i) provision for employee benefits, and (ii) others (specifying nature).
    • Provision for employee benefits is a sub-classification of 'long-term provisions'. However, amounts due within short period should be shown under 'short-term provisions' under 'current liabilities'.
    • The existing Schedule VI requires separate disclosure of provisions for dividends; contingencies; provident fund scheme; insurance, pension and similar staff benefit schemes; and other provisions. A single amount of (long-term) provision for employee benefits is required to be disclosed under the revised Schedule.