30 January 2008
Can anyone guide me on the following?
A company has acquired leasehold land for a substantial value compared to its turnover ( nearly 10%.) The same is shown in Sundry Creditors. I want to know about the possible voilations in presentation of financial statements and computation of Working capital Gap? To me this appears as utilisation of short term funds for long term investment. Please clarify. At present, I am not able to know the source of finance for this acquisition. Thanks in advance.
Creditors for capital goods ia laways shown as Creditors only. So i dont think there is any misrepresentation in financial statement. However, utilisation of short term funds for long term purpose can be judged only from source of finance only.
Creditors for capital goods ia laways shown as Creditors only. So i dont think there is any misrepresentation in financial statement. However, utilisation of short term funds for long term purpose can be judged only from source of finance only.
CAclubindia
