What is the date of application of Revised Schedule VI?[1 Mark]

  1. STATEMENT OF PROFIT AND LOSS
    1. Format of statement of profit and loss prescribed – classification of expenses is by nature.
    2. Various computations relating to profits (losses) to be shown :
      • Profit (loss) before exceptional and extraordinary items and tax
      • Profit (loss) before extraordinary items and tax
      • Profit (loss) before tax
      • Profit (loss) from discontinuing operations
      • Profit (loss) for the period.
    3. Quantitative disclosures relating to turnover, raw materials, purchases etc. dispensed with. Other significant disclosures which have been dispensed with include capacity and actual production, details of managerial remuneration.
      • The implications of the revised Schedule are varied and are expected to present a large number of implementation issues. Companies will need to plan and implement modifications in accounting systems and procedures to enable reporting under the revised Schedule.
      • Based on the analysis of the revised Schedule, the attached note seeks to provide an overall understanding of the new requirements while also discussing some of the implications that can be considered by preparers of financial statements.
  2. DATE OF APPLICATION
    • As per the MCA's website, the revised Schedule* shall be effective for financial years commencing on or after 1 April 2011. Thus, the existing Schedule VI would continue to be applicable to the financial statements for the year ended 31 March 2011.
    • In view of its application for financial years beginning on or after 1 April 2011, immediate action will need to be taken for changes required in accounting systems and procedures.