Notes forming part of Accounts
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 May 2010
Please clarify me on this issues its really very urgent for me...
While finalising the Accounts for the statutory audit for a listed company we have to provide for Contingent liabilities not provided in the accounts in the Notes forming part of Accounts:
1. Always Contingent Liabilities are not provided in the Accounts, if it is provided means it becomes a Provision - then there will be impact in the books, so it cannot be a contingent liability - am i right? - This explanation is needed since i need to understand the concept of Contingent Liability.
2. In case of Foreign Letter of Credit issued both for Capital Goods and Raw Materials which one has to be shown as Contingent Liability - To be more precise Letter of Credit which are open as on 31.3.2010
While finalising the Accounts for the statutory audit for a listed company we have to provide for Contingent liabilities not provided in the accounts in the Notes forming part of Accounts:
1. Always Contingent Liabilities are not provided in the Accounts, if it is provided means it becomes a Provision - then there will be impact in the books, so it cannot be a contingent liability - am i right? - This explanation is needed since i need to understand the concept of Contingent Liability.
2. In case of Foreign Letter of Credit issued both for Capital Goods and Raw Materials which one has to be shown as Contingent Liability - To be more precise Letter of Credit which are open as on 31.3.2010
29 May 2010
If it is an irrevocable letter of credit and goods has been despathed on 31-3-2010 you have to pass the entries. If is revocable letter of credit then you should show it as contingent liability. If it irrevocable letter of credit and goods are not despatched as on 31-3-2010 then you should show it as contingent liability.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
