Question
In preparing financial statements in accordance with the
Schedule III of the Companies Act 2013, it is crucial to correctly classify various items to ensure compliance and accuracy in reporting. The provision for taxation, must be categorized appropriately. Under which heading should the provision for taxation be classified as per Schedule III of the Companies Act 2013?Solution
As per Schedule III of the Companies Act 2013, the provision for taxation is classified under "Short term provisions." This is because it represents a liability that the company expects to settle within its normal operating cycle or within one year, aligning with the definition of short-term provisions.
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I)Â PW
...
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