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Answers (6)
Himanshu Somani
It will be a prior period item . Nature and amount should be separately disclosed in statement of P&L
It does not amount to prior period item because company company did not have any information as on balance sheet date.It should be disclosed as insurance expense in current year
AS 5 states Prior period items include income and expenses which occur in the current period due to certain errors and omissions while preparing financial statements of one or more prior periods. The nature and the relevant amount of prior period items should be declared separately P&L showing implications on current period P&L. So Ashraya has done it correctly, by not debiting to Insurance, they should be separately showing in P&L with an note explaining the details so that user of financial statements can understand the implication.... this is all subject to the materiality of the amount
Sairam Reddy
Mam what is conclusion Priod period item or not
It is prior period assuming it is a material amount to the company