As4

Sairam Reddy

If the embezzlement of cash comes to the notice of company management only after approval financial statements by board of directors of the company, then the treatment be done as per the provisions of AS-5. This being extra ordinary item should be disclosed the statement of Profit and Loss as a part of loss for the year ending 31 March, 2022. The nature and the amount of prior period item should be separately disclosed on the statement of Profit and Loss in a manner that its impact on current profit on loss can be perceived.

Sairam Reddy

But i had my self doubt that cash embezzlement is extraordinary item or exceptional item.For me most satisfactory is exceptional item.

Sairam Reddy

If the embezzlement of cash comes to the notice of company management only after approval financial statements by board of directors of the company, then the treatment be done as per the provisions of AS-5. This being extra ordinary item should be disclosed the statement of Profit and Loss as a part of loss for the year ending 31 March, 2022. The nature and the amount of prior period item should be separately disclosed on the statement of Profit and Loss in a manner that its impact on current profit on loss can be perceived.