Financial statements

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15 Points Posted on 22 April 2020
Dear experts,
1.How will we know that the company is showing fake profits in its financial statements? And if the profits are more it has to pay maximum taxes so, how will it decrease its tax return?
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2. If we have to show maximum liabilities and show less profits as per prudence concept. So, will this not decrease the goowill of the firm? Because less people will invest?

So how will we deal with this?
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On 22 April 2020 at 13:05 Report
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Quick Summary
This discussion explores how to identify fraudulent profits within a company's financial statements and methods for reducing tax liabilities. It also delves into the accounting principle of prudence, questioning its potential negative impact on a firm's goodwill and investor appeal. The conversation touches upon consulting auditors or chartered accountants for strategic advice, especially for new businesses.

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"Do the Right Thing...!!!"
128157 Points Posted on 22 April 2020
Better to consult the matter to Your auditor or Consult nearest Consultants...
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On 22 April 2020 at 16:27
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15 Points Posted on 22 April 2020
But i am going to start my foundation and right now i have no consultant to ask so thats why i asked here.
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On 22 April 2020 at 16:53
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"Do the Right Thing...!!!"
128157 Points Posted on 22 April 2020
It's open forum, Not for discuss through. So, That's why I replied as above...
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On 22 April 2020 at 16:56
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Confidential
177 Points Posted on 23 April 2020
Don't disclose your strategy and thoughts openly it may be dangerous contact a certified chartered accountant
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On 23 April 2020 at 00:39
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Profession
28261 Points Posted on 23 April 2020
@ kashish



1. it's a futile exercise to try for ascertaining the true profit.
nowadays cash flow is mandatory.
observe the cash flow statement prepared.
2.there are some obligatory provisions in the company's act.
follow that.
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On 23 April 2020 at 08:23

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