- Other Long-term Liabilities
- Other long term liabilities are required to be sub-classified in the notes as:
- 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.
- 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'.
- 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.
What is long term provisions?
