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Accounting treatment - revised schedule vi

AS 1224 views 1 replies

Hi Friends,

I require to know the treatment in the books of company of following transactions & disclosure in the accounts as per Revised Schedule VI: 1. Rs. 1 Cr. received from the party which was written off as bad debts during earlier years. 2. Rs. 50 Lakhs has been written off during the FY out of the "Advance given to suppliers" due to dissolution of such company and no response even after several correspondences to refund that amount. Will the above amount received/recognized will become Extraordinay or Exceptional items? Then how to treat those?Kindly refer Accounting Standards applicable in your reply.

Thanks in Advance

Girish

 

Replies (1)

Situation 1: This transaction should be disclosed in the financial statment as Extra-ordinary/ Exceptional item.  Refer para 12, 13 and para 14(g) of AS-5

 

Situation 2: I dont think this transaction should be disclosed seperatly. As in corporate world it is quite common to see the debtors and creditors are going insolvent.


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