what is this

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Meaning of Provision as per the companies act,1956 is

"It includes the amount,

i)written off,

ii)retained by way of providing for depriciation or reduction in the value of assets; or

iii)retained by way of providing for any known liability."

Point ii) iii) i understood.

but what is i)?

how it includes an amount written off?

what the sentence wants to tell?

Thank you very much everyone whosoever replies me.

Replies (5)

Suresh Prasad

www.aubsp.com

15630 Points Joined October 2009

PART III

Interpretation

7. (1) For the purposes of Parts I and II of this Schedule, unless the context otherwise requires,—

(a) the expression "provision" shall, subject to sub-clause (2) of this clause, mean any amount written off or retained by way of providing for depreciation renewals or diminution in value of assets, or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy;

written off

Its a remaining Value of Any Fixed Assets at the end of useful life...!!