Pradip Shaw & Co (Practice) (227 Points)
17 August 2012Delhi Public School, .
During 2010-11 actual profit Rs. 1.20 cr, Due to HO instruction Auditor create a false appropriatiob
as Arrear Salary of Rs. 40 Lacs & a Building Funfd Rs. 60 Lacs and reduce profit to Rs. 20 Lacs only.
These appropriations are showing under Reserve & Surplus.
This year 2011-12, these figures are capitalised,
Is it right teatment ?
suggest right treatment bcoz auditor is willing to change the audit report accordingly.
Vineet
(Assistant Manager)
(140 Points)
Replied 18 August 2012
I beleive they can capitalized the same for the purpose its being provided as arrear of salary already provided and its being already paid so far ..so I dont see any problem
CAclubindia
