Asset Management Company

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?