27 April 2011
i am working in educational institute and now its accounting books are going to close F.Y (2010-11). institute has its significant accounting policies. as per its police "provision for liability towards unpaid expenses as on 31st march are provided for expenses exceeding rs 10000/-". But as per AS-1 "the effects of transactions and other events are recognized when they occur and they are recorded in the accounting records and reported in the financial statements of the period to which they relate. Now the problem is whether i have to book exp relating to F.Y (2010-11) in same accounting year or next F.Y (2011-12) Please Reply Soon.
27 April 2011
AS-1 applicable to all entites. even educational institute should be follow Accounting Standard requirements. expanses should be record for when they occure/accrual basis.
you have to book exp relating to F.Y (2010-11) in same accounting year.
CAclubindia
