Page 302 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
(CNO—NBFC.380) DIFFERENCES BETWEEN DIVISION II (IND- AS- OTHER THAN NBFCS) AND
DIVISION III
(IND- AS- NBFCS) OF SCHEDULE III
The presentation requirements under Division III for NBFCs are similar to Division II (Non NBFC) to a
large extent except for the following:
Classification & Order in Balance Sheet
NBFCs have been allowed to present the items of the balance sheet in order of their liquidity which is not
allowed to companies required to follow Division II. Additionally, NBFCs are required to classify items of the
balance sheet into financial and non-financial whereas other companies are required to classify the items
into current and non-current.
Material Items Disclosure
An NBFC is required to separately disclose by way of a note any item of 'other income' or 'other expenditure'
which exceeds 1 per cent of the total income. Division II, on the other hand, requires disclosure for any item
of income or expenditure which exceeds 1 per cent of the revenue from operations or Rs10 lakhs, whichever is
higher.
Separate Disclosures
1. NBFCs are required to separately disclose under 'receivables', the debts due from any Limited Liability
Partnership (LLP) in which its director is a partner or member.
2. Separate disclosure of trade receivable which have significant increase in credit risk & credit
impaired.
3. The conditions or restrictions for distribution attached to statutory reserves have to be separately
disclose in the notes as stipulated by the relevant statute.
Common Point
NBFCs are also required to disclose items comprising 'revenue from operations' and 'other comprehensive
income' on the face of the Statement of profit and loss instead of as part of the notes.

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