hi,
can anybody tell me treatment of keyman insurance paid, in the books and should there be treatment of payment into bifurcation in prepaid expenditure and current year expenditure.
The One Says:
Treat Keyman Insurance just like any other insurance payment. Of course prepaid insurance will be shown seperately from insurance expense for the year. (i.e. deduct from the total insurance payment and in the next year add to the insurance expense since prepaid insurance is expense of the next year paid in the current year ..... Matching Concept)
In the [b]Final Accounts[/b] Loans against Keyman Insurance insurance and insurance premium charged alongwith the comparatives and accounting of Maturity values (usually on receipt basis) need to be disclosed in the[b] Notes to the Accounts[/b] section.
Hope it helps.........
CAclubindia
