Reversal of provision on diminution in value of investment
This query is : Resolved
24 June 2014
Respected Experts,
A company has made provision for diminution in value of mutual fund investment during the past year. At the end of current year the realizable value is more than the cost value. My question is should the company reverse the provision made in previous year?
Thank you
A company has made provision for diminution in value of mutual fund investment during the past year. At the end of current year the realizable value is more than the cost value. My question is should the company reverse the provision made in previous year?
Thank you
Nikhil Kaushik
(Expert)
24 June 2014
yes..any provisions that is not required should be reversed.
Message likes :
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Rupesh Jain
(Expert)
25 June 2014
provision already made, then now you should be reversed.
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