Provision for doubtful debts

RAJU (LEARNER) (1089 Points)

12 June 2010  

Dear Members

 

One of the debtor has disputed for payment of debts due to a company.  The matter is in Arbitration.  In such an event, I would like to know on what basis the company is required to provide for bad debts?  Please explain with reference to Accounting Standard...

 

Thanks in Advance
Dharmaraju