XYZ COMPANY'S EMPLOYEE WAS TEMINATED FROM SERVICE ON 01-01-2002,AND REINSTATED IN SERVICE BY THE COURT ON 01-10-2002 WITH ALL BACK SALARY.ON 01-10-2002 AS PER COURT ORDER COMPANY PAID NINE MONTH SALARY,AS THE COMPANY ACCEPTED THE COURT’S VERDICT.THE COMPANY’S FINANCIAL YEAR ENDS ON 31ST MARCH EVERY YEAR.MONTHLY SALARY OF EMPLOYEE IS 15000 PER MONTH.
AS PER AS-5, THIS CASE IS NOT COVERED AS PRIOR PERIOD EXPENSE.WHETHER THE TREATMENT GIVEN IS CORRECT?
WHETHER THIS CASE CAN BE COVERED UNDER AS-4, AS AN EVEENT OCCURRED AFTER BALANCE SHEET…!
CAclubindia
