Accounting Clinic
Featured FAQs
Companies sometimes, while employing a contractor for construction of plant/ machinery/ any similar asset, specify in the agreement that liquidated damages shall be paid as compensation for failure to meet performance co...
Whether such liquidated damages received by companies could be deducted from the cost of the related asset or recognised as income?
Companies may have a delivery schedule to be fulfilled over a period, which may extend to periods after the Balance sheet date. A company may believe that it shall not be able to meet a delivery schedule which shall aris...
Considering the above example, determine whether the entity has a present obligation as at March 31, 2021, requiring recognition of provision.
Companies generally receive grants which are intangible, from the government, subject to fulfilment of certain conditions.
For example:-
Entity B ...
In the above example, what accounting treatment should be done?
Companies generally acquire rights to access application softwares from application software services providers. These softwares are maintained by the service providers and hosted on their cloud.
In the above example, whether Z Ltd. can recognise it as a software asset as per Ind AS 38, Intangible Assets?
Sometimes, entities complete the activities of construction/ acquisition of a qualifying asset (say a building) but are not permitted to use the asset until certain safety approvals/ regulatory approvals are obtained as ...
Should capitalisation of borrowing costs be continued when the qualifying asset has been constructed and is ready for use but is not permitted to be used until safety approvals/ regulatory approvals a...
Companies generally prepare interim financial report for the quarter endings which are approved for issue by the Board of Directors at a later date after the quarter end.
For example:...
Whether events occurring between end of the interim financial report (30 June 2020) and date of approval by Board of Directors (15 July 2020), that provide evidence of conditions that existed at the e...