Where should we transfer the amount of wrong estimation of previous year in the current year pursuant to provision on unrealised interest for banks?
Chitral Sharma (Associate) (30 Points)
08 July 2014Where should we transfer the amount of wrong estimation of previous year in the current year pursuant to provision on unrealised interest for banks?
CA. Roopali Kadam
(Jobs on assignment basis.)
(1453 Points)
Replied 09 July 2014
As per my understanding, wrong amount should be reversed. If it is due to error or omission in previous year then as per As 5 it should be shown as Prior Period Item in P/L.Revision of estimates due to change in circumstances is not error or omission.
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