The accounting policies are undergoing transition across the world. There are attempts to harmonize the accounting methodologies and principles so that the same can be easily understood by all the stakeholders. The Ministry of Corporate Affairs, vide its notification No. 447(E) dated 28th February, 2011, has revised the Schedule VI of the Companies Act, 1956. The notification has come into force for the Balance Sheet and Profit and Loss Account to be prepared for the financial year commencing on or after 1.4.2011. In view of the same, the annual accounts from the financial year 2011-12 have to be prepared in line with the Revised Schedule VI of the Companies Act, 1956. The revised Schedule VI, is in line with generally accepted financial statements followed in different parts of the world. Ministry has also notified that the new Schedule VI is to be applicable to financial year ending on 31-03-2012.
Amendments’ to the Schedule VI revised is line of simplification and understanding by all the stakeholders, i.e., financial statements, balance sheet, profit and loss notes to the accounts and significant account in policies followed or understood in the same parlance.
The revised Schedule VI has eliminated the concept of schedules and such information will now be provided in the notes to accounts. From now on, the compliance requirements of Act and/or Accounting standards will prevail over schedule VI. In revised Schedule VI, better presentation, disclosure is intended to facilitate better organised data for users of financial statement.
To help the Chartered Accountants to understand the changes those have been made through the revision in Schedule VI, the Committee for Capacity Building of CA
Firms and Small & Medium Practitioners (CCBCAF & SMP) is bringing out a book -
`Revised Schedule VI: A Practitioner’s Guide’. The book which provides a knowledge base for the Practitioners for preparing the financial statements under the new Schedule VI. I congratulate the Chairman CCBCAF & SMP and his team for their efforts in bringing out this book. I hope that this publication would help the members in enhancing their knowledge base in the practice portfolio.