Query on accounting for Loan perk

C Reddy (Entreprenuer) (133 Points)

25 February 2010  

Hi All,

Suppose a Company includes around Rs.4000 as loan perk in the salary structure of its employees, though there is actually no such loan perk being given, what will be the accounting implications for the company because if they show a loan given to employees it would amount to an asset to the company, isn't it?

Is this a correct practice? Please clarify.

Thanks