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BG commission

This query is : Resolved 
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(Querist)
27 May 2008 I have taken a Bank Gurantee for 2 years for submission to our client office. I want to know that BG commission for 2 years accounted once a time or prepaid
BG commission basis. please advise me.

Thanks
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CA. Yayati Tyagi

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CA. Yayati Tyagi (Expert)
27 May 2008 if amount is material enough, distribute period wise and create prepaid exp., otherwise write off in full in first year.
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S.Srinivasaraghavan

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S.Srinivasaraghavan (Expert)
27 May 2008 Yes that is the right approach.
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