Recognition of Expenses

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Rashi (Querist)
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16 October 2008 A sick company has not provided for interest expenses of March month in its books of account.All other expenses have been provided on accrual basis.Whether a auditor is required to qualify his report. if yes. in what manner

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 October 2008 Amount of interest,effect of the same in the repoted profit/loss,effect of the same in reserves and surplus/debit balance in p&l a/c and effect of the same in unsecured loans/secured loans may be disclosed by way of a note. Referance of this note may necessarily contain in the main report. Another note also should be given stating that the company follows accrual concept except for interest expenses(give details ).

CA V. Mohanakrishnan

CA V. Mohanakrishnan (Expert)
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17 October 2008 if the provision for the same has been overlooked the amount can be provided for before the report is provided.

the qualification needs to be done only if the company is not wanting to provide for the same

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