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Insurance claim

Accountancy

I didn’t get this alternative assumption. Can anyone explain

Sugam SM

CA Inter

★ 9K+

22-Mar-23 13:51

224

Answers (3)

Fire on 1st March 20X2. Previous year's turnover is from 1st April X0 till 31 March X1. Turnover for 12 months before fire covers 1st March of X1 till 28 Feb X2. Now this would already be trend adusted.

CA Suraj Lakhotia

Admin

22-Mar-23 15:10

So the entire annual turnover is adjusted to trend? In month of march 20X1 there is no trend right. We adjusted trend from 1/4X1 to 28/2/X2 I am getting clarity but not to that extent.

Thread Starter

Sugam SM

CA Inter

★ 9K+

22-Mar-23 15:31

Thread Starter

Sugam SM

So the entire annual turnover is adjusted to trend? In month of march 20X1 there is no trend right. We adjusted trend from 1/4X1 to 28/2/X2 I am getting clarity but not to that extent.

Turnover before fire is already at actuals for major period and hence the second assumption is also valid. HOwever, better to follow the normal method for exams.

CA Suraj Lakhotia

Admin

22-Mar-23 15:37