Financial reproting
This query is : Resolved
ritu dutta
(Querist)
20 September 2013
A company is providing 2-3% of provision for doubtful debt in past years but estimated that there will be bad debt of 6% on credit sales for the current year. It made a provision accordingly after analyzing the credit worthiness of the customers.whether the company has prepared the financial statement in compliance with
accounting standards? please clearly explain the provisions
accounting standards? please clearly explain the provisions
Nikhil Kaushik
(Expert)
21 September 2013
Dear Ritu.
If the management is of the view that providing for doubtful debtors at 2-3% in the current year would result in overstatement of profit, it shall be within its rights to increase the provision. It would be useful if the management provides an explanation for the increase in provision and also state whether the same is a one-time measure of a policy change to be followed in subsequent years too.
If the management is of the view that providing for doubtful debtors at 2-3% in the current year would result in overstatement of profit, it shall be within its rights to increase the provision. It would be useful if the management provides an explanation for the increase in provision and also state whether the same is a one-time measure of a policy change to be followed in subsequent years too.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Intimation under section 245
- How do you manage client document collection and follow-ups in your CA/CS practice?
- Gift to nri relatives residing in usa
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
