Accounting standard

Here, accounting policy of the company is to provide provision for non moving items. Company changed method of calculation of provision from 12 month issued to technical evaluation.So, change in method of calculation does not amount to change in accounting policy. And the difference in provision is immaterial while considering the total value of the stock. Anywhere you can provide disclosoring notes accounts like Company made provision for non moving items based on technical evaluation which is different from the last year, if the company followed provision estimation like preceding years then net assets would have been lower by 1 lakh

Saheer Anas

CA Inter

★ 335

12-Oct-22 11:41

Whatz the method of provision in this question

Thread Starter

Shankari C

CA Inter

★ 12K+

12-Oct-22 13:20

Earlier it was no issue for last 12 months and now they changed to some technical valuation

Saheer Anas

CA Inter

★ 335

12-Oct-22 13:35

Thanks

Thread Starter

Shankari C

CA Inter

★ 12K+

12-Oct-22 20:12