Provision for bad debts

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RAJU (Querist)
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12 June 2010 Dear Sirs,

One of the debtor has disputed for payment of debts due to a company. The matter is in Arbitration. In such an event, I would like to know on what basis the company is required to provide for bad debts? Please explain with reference to Accounting Standard...

Thanks in Advance
Dharmaraju

Aditya Maheshwari

Aditya Maheshwari (Expert)
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12 June 2010 Please read As -29 and the conditions mentioned therein that require to make a provision for expenses. If the conditions are satisfied then provision compulsory.

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