FinTattva / Schedule III

Note 16

AS 1

Long-term Loans and Advances

Long-term Loans and Advances

General Instructions for Preparation of Statements
Capital advances, security deposits, and related party loans due beyond 12 months.

Long-term Loans and Advances Workings

Schedule III, Part I — Division I (Section L)FY 2025-26

Definition

Loans and advances that are expected to be recovered more than 12 months after the reporting date or beyond the normal operating cycle.

Recognition Criteria

Recognized when the loan is disbursed or advance payment is made, establishing a legal right to recover cash or receive goods/services in the future.

Measurement Principles

Carried at cost less provisions for bad and doubtful loans. Any material provision must be separately disclosed under relevant heads.