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Accountancy

AS-4 EXAPLIN THIS. Accounting treatment for contingent losses and gains...( attached below)

Sathiya Bama

CA Final

★ 23K+

09-Jun-21 10:36

239

Answers (1)

In case it is likely that contingency would result in the loss of the business, then itâ??s prudent to account for such loss in the financial statements. A Contingent gain isnâ??t recognized in the financial statements as their recognition could result in recognition of revenue that might never be realized.