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.
3 Replies
satish
(teaching)
(2046 Points)
Replied 17 October 2018
it's a contingent liability. so it is to be disclosed in report. no need of any adjustment entry
Rohit Patel
(20 Points)
Replied 17 October 2018
what if the company lawyer is of the opinion that employee will win the case
satish
(teaching)
(2046 Points)
Replied 17 October 2018
in that case, you should make the provision for the future liability out of current year profits.
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