Page 252 - ISCDEBK-12

Final Accounts of Companies—Application of Schedule III, Part I... 10.3

(ii) Intangible Assets
These are the assets which do not have physical existence. Examples are: patents,
trademarks, computer software, etc.
(iii) Capital Work-in-Progress
Capital Work-in-Progress means expenditure incurred on construction or development of
tangible assets.
(iv) Intangible Assets Under Development
Intangible Assets Under Development means expenditure incurred on development of
intangible assets.
(b) Non-Current Investments
Non-Current Investments are those investments that are invested to be held for a period of more than
12 months from the date of Balance Sheet or after the period that is more than the period of a
Operating Cycle.
A trade investment is Non-Current Investment when it is invested to be held for more than 12 months
from the date of Balance Sheet or for a period that is more than the period of a Operating Cycle.
(c) Deferred Tax Assets (Net)
It is the amount of tax on the temporary difference between the accounting income and taxable
income. It is only a book entry and not an actual asset. It arises when accounting income is less
than the taxable income.
(d) Long-term Loans and Advances
Long-term Loans and Advances are loans and advances given by the company that are repayable
or adjustable after 12 months from the date of Balance Sheet or after the period of Operating Cycle.
(e) Other Non-Current Assets
All Non-Current Assets that are not shown or classified under the above heads are Other
Non-Current Assets.

7. Current Assets
Current Assets are those assets which are:
(a) expected to be realised in or intended for sale or consumption in normal Operating Cycle of the
company; or

(b) held primarily for the purposes of trading; or
(c) expected to be realised within 12 months from the reporting date or closing date. (Reporting
date is the date for which financial statements are prepared.); or

(d) Cash and Cash Equivalent unless it is restricted from being exchanged or used to settle a liability
for at least 12 months after the reporting date.

Current Assets are classified into: Current Investments; Inventories; Trade Receivables; Cash
and Cash Equivalents; Short-term Loans and Advances; and Other Current Assets.

(a) Current Investments
Current Investments are those investments that are invested to be held for a period of less than
12 months from the date of Balance Sheet or within the period of Operating Cycle.