- This topic has 1 reply, 2 voices, and was last updated 3 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Legal claim payment order by court = $1.2m (not paid at year end)
Insurance co. accepted that the entire claim will be reimbursed, hence it is a virtually certain asset.
The answer to Sept 18 que, Coram & Co. mentions following treatment is correct:-
1) Asset (receivable from Insurance Co.) Dr. = 1.2m
Provision Cr = 1.2m2) Answer states that no impact of this will be reflected in P/L in this year.
My question = Why will there be no impact on P/L. Don’t we recognise any losses/certain cash outflow immediately?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.