Business Daily from THE HINDU group of publications
Saturday, Jun 24, 2006
Business Daily from THE HINDU group of publications Saturday, Jun 24, 2006 |
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Industry & Economy
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Excise and Customs Corporate - Accounting Standards Disclosure norms for excise duty revised Our Bureau
New Delhi , June 23 Manufacturing companies would have to come up with more disclosures on excise duty in their profit and loss statements. The Institute of Chartered Accountants of India (ICAI) has revised the disclosure norms for excise duty in the presentation of turnover in profit and loss statements. Prior to the latest change, companies were required to show the amount of excise duty as a deduction from the turnover on the face of the profit and loss account.
Revised norms
The ICAI has now revised its disclosure norms to clarify that the amount of excise duty to be disclosed as deduction from turnover should be total excise duty for the year except the excise duty related to the difference between the closing stock and opening stock. The excise duty related to the difference between the closing stock and the opening stock should be recognised separately in the profit and loss statements. An explanatory note in the notes to accounts has also been mandated to explain the nature of the two amounts of excise duty. An ICAI official pointed out that the excise duty related to the difference between the closing stock and opening stock is not to be shown as deduction from turnover as it is not included in the turnover. As per the revised norms (revised Accounting Standards Interpretation-14), two amounts of excise duty would be appearing in the profit and loss account - one as a deduction from the turnover and the other as a separate item in the profit and loss statement.
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