LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Accounting standards

MPR sanjay Kumar (CA student) (216 Points)

14 January 2021

what is mean by the word contingent

Reply
Follow
Share

51 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 14 January 2021

Contingent means any situation which would happen or not happened in future means if any liability or assets are contingent that liability should occur or not in future same in assets also

2 Like

MPR sanjay Kumar (CA student) (216 Points)
Replied 14 January 2021

What is mean by material and immaterial effect

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 14 January 2021

Material effect means any situation or event which have huge effects on financial statements otherwise it will show improper results

immaterial effects is the antonym of material effect

1 Like

MPR sanjay Kumar (CA student) (216 Points)
Replied 14 January 2021

What is mean by material and immaterial effect

MPR sanjay Kumar (CA student) (216 Points)
Replied 14 January 2021

Provision vs contingent liability

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 14 January 2021

Provision in simple terms is the amount you set aside for meeting liabilities in future

contingent liabilities are those liabilities which have occurred in a event which may happen or not happened in future as per certain situations

MPR sanjay Kumar (CA student) (216 Points)
Replied 14 January 2021

What is mean by prudence ,substance over legal form

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 14 January 2021

When the economic resource outflow is remote/possible with a reliable measurement/ estimate becomes contingent

1 Like

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 14 January 2021

Prudence means to be careful in in implementing the accounting principles at all times.

Substance or form is the economic form of a transaction Ian more important than the legal form of it. Eg. if a company policy is to own a car only to transport employees, which is expensive than a single bus, you will purchase a bus. Here, in provisioning, you can create a provision irrespective of the legal form.

MPR sanjay Kumar (CA student) (216 Points)
Replied 14 January 2021

What is mean by securities give some examples ,what actually it includes

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 14 January 2021

Securities are financial instruments. They are measured at fair value. They can be both financial assets and financial liabilities. Bonds, mbs, mutual funds, reits