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+--- Thread: Liability Write off (/showthread.php?tid=8837)
Liability Write off - junio - 09-28-2010
please anybody tell me that which law requires to write off the liability after three years???
- Nobin - 09-28-2010
Hi dear
There is no laws which precise the timing for writing off of liabilities. However, management should judge the remoteness for any future claim to arise from the liability. Hope this answer your question.
Nobin
- Ammar - 10-02-2010
there is company law which needs all liabilities are removed from yhe books of accounts
which are older more than 36 months
- ciapk - 10-04-2010
Dear,
There is no law that forces the writing off liabilities after three years. However, for tax purposes such liabilities will be added back as income and tax will be applied to such income including such liabilities.
Regards,
- junio - 10-07-2010
<font face="Trebuchet MS">ciapk
would u plz elaborate it with a short example? </font id="Trebuchet MS">