AS 1

Answer is self explanatory.

Himanshu Somani

CA Final

★ 97K+

18-Apr-23 23:31

You will understand this better after you do AS-29.

CA Suraj Lakhotia

Admin

19-Apr-23 07:36

Company has provided interest only till due date. However the amounts are unpaid. SO interest would be charged after due date till date of repayment.

CA Suraj Lakhotia

Admin

19-Apr-23 07:37

https://youtu.be/0ePhCyd-zos kindly go through this 👍👍

Balachandar S

CA Inter

★ 59K+

19-Apr-23 13:30

As per AS-1, Entity should apply Accounting Polices which are prudent i.e where expenses are recognised even if uncertain. Also AS 1 required application of Accrual assumption where expenses are recognised on time/period basis not on payment basis. In the given case, XYZ ltd has ICDs whose repayment is delayed, as such Accrual concept specifies that Interest should be provided for delayed period of repayment. Since the rate is not certain entity should make best estimate of expected rate of Interest. Hence Accounting Polices for not providing interest on delayed payment is not correct.

Jitendra Kumar

CA Final

★ 41K+

30-Apr-23 10:57