Register now or log in to join your professional community.
A sold good to B for $10000 on60 days credit on30.11.14. B declared bankrupt on25.12.14. A approached you to take your advice whether any provision required for $10000 because B became bankrupt.
You are requested to advise him accounting treatment as per IFRS.
A provision of bad debts to be recognized with the whole amount $10000 against the customer B
As per IAS18, when there is uncertainty in ultimate collection of amount then revenue recognisaton should be postponed till the time it becomes certain . if already recognized in the books , then needs to make provision to that extent
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.