Rahul bansalrahul bansal asked 5 years ago

Sir in cno 88
If auditor gets to know that the negotiation is successful and company don’t has to pay the amount now in future then why provision is required to be made. 
As 29 also says that if probability is less than 50% for outflow of resources then no need for provision. 

1 Answers
RaviRavi Staff answered 5 years ago

Successful Negotiation doesn’t mean , company doesn’t have to pay. It means company has to pay only 1.5 crore because of successful negotiations