Ind AS Schedule III Checklist | Presentation & Disclosure of Current & Contingent Liabilities in the Financial Statements
- Blog|News|Account & Audit|
- 2 Min Read
- By Taxmann
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- Last Updated on 13 June, 2023
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The accurate presentation and disclosure of current and contingent liabilities in financial statements are essential for stakeholders to gain a comprehensive understanding of a company’s short-term obligations and potential liabilities. Current liabilities represent the short-term obligations that a company is expected to settle within its normal operating cycle or within one year from the reporting date. On the other hand, contingent liabilities are potential obligations that may arise in the future, depending on the outcome of uncertain events. Ind AS Schedule III provides guidelines and a checklist for management to ensure the accurate and transparent presentation of current and contingent liabilities in the financial statements. To effectively present current and contingent liabilities in the financial statement and comply with the requirements of Ind AS Schedule III, management may use the following checklist:
I. Has the company disclosed Current Borrowings as Loans repayable on demand from banks and from other parties, Loans from related parties, Deposits, and Other loans (specify nature)
II. Whether the company has sub-classified the borrowings as secured and unsecured
III. In case of secured borrowings, has the company specifically mentioned the nature of security
IV. Where loans have been guaranteed by directors or any person or company, whether the company disclosed the aggregate amount of such loans under each head
V. Whether the company has separately specified the Period and amount of default in repayment of borrowings and interest as on the Balance Sheet date
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