Prior period expenses

Hi Naman,

I think the provision is to be made....since the very meaning of provision says that u ve to provide for an expected future exp.....So it doesnt depent on the bill. Since u ve only said that it relates to previous year, provision has to be made....

And one more thing is it cant even be treated as a contingent Liab, since the same has already occurred..So provision is to be made...