WHAT IS THE METHOD OF SET OFF THE EXTRAORDINARY PROFIT & LOSS IN BALANCE SHEET.
IT IS ALLOWABLE FOR NEXT FIVE YEARS OR MORE FOR A PUBLIC LTD CO.
PLS EXPLAIN THROUGH EXAMPLES
THANX
Set off (Profit/Loss)
(Guest)
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 27 June 2008
No there is no such provision to wite off them in 5 years. As per AS-5 EI's should be disclosed in the Income Statement in a manner that, its impact on current profit or loss can be preceived. Neverthless, it should be remembered that such amounts are only a part of the net profit or loss of the period.
Regards,
CA Naveen Kumar Agrawal
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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