06 August 2010
Generally Revenue means inflow of income from operations. Whatever income is generated by engaging in the business is called revenue income.
There may be possibilities were one creditor's balance is lying in the books since last 3 years. Now it is felt that money will not be claimed by creditor and/or it is now time barred.
In this situation; the creditors amount may be written off to the extent which is not likely to be paid by the business enterprise.
This is called Restatement of Carrying Amount of An Obligation.
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