AS doubt........................

Provisions & Contigencies are covered in AS 29. Now, As-4, only deals with the problems of Events occuring after Balance Sheet date.

Earlier provisions are dealt as per AS-4. But, ICAI has came with a new AS-29 to dealt with the Problems of Provisions, Contingent Assets & Liabilities and the problems relating to Events occuring after Balance Sheet date are remained left in AS-4.

Yes, i m sure.

A mistake in spell is rectified.

Contingencies are covered in AS-29.

frnds..

Contingencies are covered in AS 4, and Provisions in AS-29, they both possess different meanings and should not be taken together in one sense.

Their names itself tell all this.

dear..u just read the names of both the standards, u'll get it!!

there is a difference between

a)contingencies; and

b)contingent assets/liablities

e.g. u must be aware of sealing by mcd in delhi,,,that event can pose a impact on going concern of the entity...that thing is called contingency

and if a suit is filed against u, and u hope to lose it at bal sheet date, then it wud be a contingent lialblity and would be stated as a footnote.

One thing more for ur understanding....that  contingencies are seen for adjusting events occuring after bal sheet date, thats why it is covered in as 4.

I hope that much wud be suficient for u..tell me if any doubt is still there!!

Dear Celiena goel, just check out this:-
Pursuant to AS 29, Provisions, Contingent Liabilities and Contingent Assets, becoming mandatory in respect of accounting periods commencing on or after 1.4.2004, all paragraphs of AS 4 that deal with contingencies stand withdrawn except to the extent they deal with impairment of assets not covered by other Indian Accounting Standards.

Hope this will help you.......