PROVISION

This query is : Resolved

avinash (Querist)
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23 January 2010 CASE - THE COMPANY MADE RS 100000 PROVISION FOR THE PAYMENT TOWARDS LTA IN THE YEAR 2008-09. BUT IN THE CURRENT YEAR 2009-10 THE CO. BOOKED RS 150000 AS LTA EXPENSES RELATING TO 2008-09.

HOW IT WILL BE SHOWN UNDER BOOKS AND FINANCIAL STATEMENTS.
IS THE EXCESS PAYMENT OVER PROVISION WILL BE SHOWN UNDER PRIOR PERIOD EXPENSES IN THE P&L A/C.

AS AN AUDITORS SHOULD I QUALIFY THE REPORT.

PLEASE SUGGEST BOTH ACCOUNTS AND AUDIT PROSPECT OF THE CASE.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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23 January 2010 yes It is a prior period expenditure. For qualifying audit report, check materiality and disclosure as per As-5