12-24-2009, 05:16 PM
Dear Zia;
Provision for bad debts is recognised on the basis that the debts may not be recovered by the Company, which shows an expectation of the loss which belongs to a past event and a reliable estimate can also be made about the loss.
About your second question, Any loss incured during the year must be provided for in the period to which it relates.
Provision for bad debts is recognised on the basis that the debts may not be recovered by the Company, which shows an expectation of the loss which belongs to a past event and a reliable estimate can also be made about the loss.
About your second question, Any loss incured during the year must be provided for in the period to which it relates.
