Dear Friends,
Usually we will account Insurance as a prepaid expenses for 12 months. Now, we procured tools for machines and its cost is about 1.5Lakh. Is there any provisions for accounting this expenses under prepaid tools for machines? as per INDAS ?
Provisioning in accounts is a general phenomenon
You need to provide for expenses as per prudent accounting concept and " ACCRUAL CONCEPT".
CAclubindia
