GENERAL INSTRUCTIONS FOR PREPARATION OF BALANCE SHEET

PARTICULARS

(a) it is expected to be realised, or

is intended for sale or consumption,

in the company’s normal operating

cycle; or(b) it is held primarily for

the purpose of being traded; or

When an asset
(c) it is expected to be realised
shall be If it satisfies any of the
1. within twelve months after the
classified as given criteria
reporting date; or
current?

(d) it is cash or cash equivalent

unless it is restricted from being

exchanged or used to settle a

liability for at least twelve months

after the reporting date.

When an asset

shall be Asset other than Current Asset shall

2.
classified as be classified as non current

Non Current ?

Time betweenThe Where the normal operating cycle

Operating Cycle acquisition of assets for cannot be identified: It is assumed

processing And to have a duration of 12 months

 Their realisation in cash or

cash equivalents

(a) It is expected to be settled in the

company normal operating cycle;

or(b) It is held primarily for the

purpose of being traded; or

(c) It is due to be settled within

twelve months after the reporting

When liability date; or

shall be If it satisfies any of

(d)The company does not have an
classified as thegiven criteria
unconditional right to defer
current ?
settlement of the liability for least

twelve months after the reporting

cm Terms of a liability that could, at

the option the counterparty, result in

its settlement by the issue of equity

instruments do not affect its

classification.

When an liability

shall be liability other than Current liability

classified as shall be classified as Non-Current.

Non Current ?

When receivable
If it is in respect of the
shall be In The Normal Course Of Business
amount due on account of
classified as a
 “trade goods sold or services

receivable” ? rendered

When payable
If it is in respect of the
shall be
amount due on account of
classified as a In The Normal Course Of Business
goods purchased or
“trade payable”
services received
?