AS 29

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20 Points Joined May 2018
Employee filed a case against company.
If employee wins the case company has to pay Rs.100000.
what will be the treatment as per AS29.
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On 17 October 2018 at 14:14 Report
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teaching
2046 Points Joined February 2009
it's a contingent liability. so it is to be disclosed in report. no need of any adjustment entry
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On 17 October 2018 at 17:33
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20 Points Joined May 2018
what if the company lawyer is of the opinion that employee will win the case
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On 17 October 2018 at 17:37
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teaching
2046 Points Joined February 2009
in that case, you should make the provision for the future liability out of current year profits.
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On 17 October 2018 at 17:49


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