Which entries are correct in accordance with the manner prescribed in the revised Schedule III to the Companies Act, 2013-

(A) The shareholders' funds are sub-classified as Share Capital, Reserves and Surplus & Money received against Share Warrants.

(B) Reserves and Surplus include Revaluation Reserve.

(C) Both tangible and intangible assets are current assets.

(D) Deferred tax assets/liabilities are always non-current.

Choose the correct answer from the options given below:

Let me evaluate each statement as per the revised Schedule III to the Companies Act, 2013:

Statement (A): Shareholders' Funds are sub-classified as Share Capital, Reserves and Surplus & Money received against Share Warrants.

As per Schedule III, Shareholders' Funds consist of exactly these three components. This classification is mandatory for Balance Sheet presentation. ✓ Correct

---

Statement (B): Reserves and Surplus include Revaluation Reserve.

Schedule III explicitly lists Revaluation Reserve as a component under Reserves and Surplus, along with Capital Reserve, Securities Premium, Capital Redemption Reserve, and other specified reserves. ✓ Correct

---

Statement (C): Both tangible and intangible assets are current assets.

This is incorrect. Tangible assets (like Plant & Machinery, Buildings) and intangible assets (like Goodwill, Patents, Trademarks) are classified under Non-Current Assets, not current assets. Current assets include items like inventories, trade receivables, cash and cash equivalents that are expected to be realized within the operating cycle or 12 months. ✗ Incorrect

---

Statement (D): Deferred tax assets/liabilities are always non-current.

Schedule III specifically mandates that deferred tax assets and deferred tax liabilities must always be classified as non-current, irrespective of when they are expected to be realized or settled. This is a unique feature distinguishing deferred tax from other assets/liabilities. ✓ Correct

---

Statements (A), (B) and (D) only are correct.

Correct Option: 2