in making provisions for doubtfull assets were should we subtract d amount of guarantees of DICGD/ECGC :
before calculating the amount of provision or after calculating d amount of provision?
1 Replies
* Krishna *
(CA Student)
(6149 Points)
Replied 23 December 2010
In case any advance amounts are guaranteed by Export Credit Guarantee Corporation or Deposit Insurance & Credit Guarantee Corporation, provision should be made only for the balance in excess of the amounts guaranteed by ECGC/DICGC. In case of provision to be made for doubtful assets, realisable value of securities should be deducted first from the o/s balance in respect of amount guaranteed by the ECGC/DICGC.
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