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Hi sir
When a company incurs a current liability this yr(for eg due to sale and repurchase agreement),do we deduct that whole amount from group retained earnings or only any ups and downs in liabilities?Thanks 🙂
From Group Retained earnings, we deduct the full amount.
However, from the Statement of Income perspective, only this year’s movement is deducted
Imagine it as a Provision for Doubtful Debts. The full amount of the provision has been deducted through history from the retained earnings but only the movement THIS year is taken through this year’s income statement
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