CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Treatement of Bank Gurantess in the Financial Statements


RAHUL L C SHARMA (AUDITOR)     01 August 2020

RAHUL L C SHARMA
AUDITOR 
 21 points

| My Other Post

what is the treatment for the Bank Gurantees (BG) in the Financial Statements given by the contractor ??

avater

yasaswi gomes   02 August 2020

yasaswi gomes

 85 likes  1503 points

View Profile | My Other Post

Bank Guarantee is similar to a Letter of credit in that they both instil confidence in the transaction and participating parties. However the main difference is that Letters of Credit ensure that a transaction goes ahead, whereas a Bank Guarantee reduces any loss incurred if the transaction does not go to plan.

not treated in financial statements because it is credit protection, just like how an insurance is recognised in financial statements but not the benefits or future claims  from it. 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Popular Discussion


view more »



Trending Tags
GST Live Class    |    x