Non-current liabilities play a vital role in understanding the financial statement by providing stakeholders with comprehensive information about the company’s financial position and obligations. It represents long-term liabilities such as non-current loans, bonds, trade payable and provisions which requires careful presentation and disclosure to ensure the users of financial statements have a clear view of the company’s long-term financial position. Ind AS Schedule III provides the framework for the accurate and transparent presentation of non-current liabilities in the financial statement. This discussion includes the checklist which management may use to comply with the requirement of Ind AS Schedule III and effectively present non-current liabilities in the financial statement.
A. Has the company disclosed the Non-current Liabilities on the face of the balance sheet as Borrowings, Provisions, Deferred tax liabilities (Net), and Other non-current liabilities
B. Whether the company has classified the Non-current borrowings in Bonds or debentures, Term loans, deferred payment liabilities, Deposits, Loans from related parties, liability component of compound financial instruments, and other loans (specify nature)
C. Has the company examined, whether the lease liability under non-current liabilities represents the principal amount of such lease liability payable beyond a period of 12 months from the reporting date
D. Whether the company has sub-classified the borrowings as secured and unsecured
E. In case of secured borrowings, has the company specifically mentioned the nature of security
Click Here To Read The Full Story
The post Ind AS Schedule III Checklist | Presentation & Disclosure of Non-Current Liabilities in the Financial Statements appeared first on Taxmann Blog.
