Presentation of Trade Payables in Ind AS Financial Statements: A brief

Ind AS Schedule III sets out the minimum requirements for disclosure on the face of the Financial Statements, i.e., Balance Sheet, Statement of Changes in Equity for the period, the Statement of Profit and Loss for the period.

In the notes to accounts related to Trade payables that appear under the head “Non- current liabilities” and “Current liabilities” as a separate line item, the guidelines as provided by Schedule III need to be followed.

Trade Payable is the amount due on account of goods purchased or services received in the normal course of business. The amount that is due under any contractual obligations or that is statutory payable shall not be considered as Trade Payables.

‘Trade Payables’ shall be presented as a separate line item on the face of the Balance Sheet under ‘Financial Liabilities’. The same should be further categorized into total outstanding dues to micro-enterprises and small enterprises and total outstanding dues to creditors other than small enterprises and micro-enterprises. A separate disclosure shall be provided for the outstanding dues of micro and small enterprises.

Also, the company is required to provide the ageing of trade payables due for payment as on the balance sheet date in the format prescribed by Schedule III.

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