03-15-2011, 11:28 PM
Dear Members
I have one below query (related to Banks) and appreciate to have your views
"We had some contingeny in our books (Shown under contingeny and commitments)and corrsponding provision against it in other liabilities (provision against off balance sheet obligations). Auditors were of the view that if you have recorded the liability by creating the provision then there isn't any contingency and therefore it need to be reversed. I believe this is impairment in contingeny and as like advances we have to show the both contingency and its provision/impairment in other liabilities"
Need your views, whether or not contingency need to be reversed.
I have one below query (related to Banks) and appreciate to have your views
"We had some contingeny in our books (Shown under contingeny and commitments)and corrsponding provision against it in other liabilities (provision against off balance sheet obligations). Auditors were of the view that if you have recorded the liability by creating the provision then there isn't any contingency and therefore it need to be reversed. I believe this is impairment in contingeny and as like advances we have to show the both contingency and its provision/impairment in other liabilities"
Need your views, whether or not contingency need to be reversed.
