Can anyone help me on the following topics:
1. Senario : AMC Co. makes Investment in various Mutual Fund Schemes and also switches from one scheme to
another as and when they want.
Question : On Redemption - Profit is booked.
On Switch - Can they book the profit and take the switch price of transferer scheme as cost of transfree
scheme?
Note : Profit is not realised when switch is done, it is just a notional profit.
2. Scenario : Provision Made-Rs100 crore on 31-Mar-2010, Actual Expenses - Rs80 crore
Question : What entry can be passed when actual expenses is incurred?
What shall be the treatement of difference amount (i.e. Rs 20 crore)?
Can we take it as the income of current year as Excess provision written back?
CAclubindia
