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Measurement bases

Accountancy

Liabilities are carried at the undiscounted amount of cash or cash equivalents that would be required to settle the obligation currently. This is the treatment for liabilities under current cost basis. Here, what is the meaning of undiscounted amount of cash and cash equivalents? Pls explain.

Sibi Srinivasan

CA Final

★ 22K+

18-Jun-22 15:36

358

Answers (2)

Say you have to pay Rs. 1,00,000 after 1 year. Interest rate is 10%. The present value is 90,909/- The undiscounted value is Rs. 1,00,000

CA Suraj Lakhotia

Admin

18-Jun-22 16:50

Ok sir. Thank you!

Thread Starter

Sibi Srinivasan

CA Final

★ 22K+

18-Jun-22 18:44