Hi friends,
if a company has not completed 5 years, is it necessary for it to make provision for gratuity in its accounts.?
sudhir gautam
(CA Final)
(145 Points)
Replied 26 June 2009
Dear freind
provision for the grautity payment can be made if there possiblty of contigent liablity in the near future and it is to shown as the part of notes in the balance sheet.
Vinay Ramachandran
(Chartered Accountant)
(168 Points)
Replied 26 June 2009
Hi,
In case of companies....just get it acturially valued as per AS 15......LET THE ACTUARY BREAK HIS HEAD........ :-)
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