Trade payables to be settled beyond 12 months from the date of Balance Sheet or beyond the operating cycle are classified under which main head/sub-head?
- ALong-term provisions
- BOther long-term liabilities
- CDeferred tax liabilities
- DLong-term Borrowings
Solution & Step-by-step Explanation
As per Schedule III of the Companies Act, 2013, current liabilities that fail the 12-month or operating cycle settlement timeframe are reclassified into Non-Current Liabilities. Within Non-Current Liabilities, obligations like long-term trade payables are placed under the sub-head Other long-term liabilities.