Question

PRINCIPLE OF CONSERVATION / PRUDENCE IS APPLIED TO: VALUATION OF CLOSING STOCK AT COST OR MARKET PRICE WHICHEVER IS LESS. CREATION OF PROVISION FOR DOUBTFUL DEBT WRITING OFF INTANGIBLE ASSETS LIKE GOODWILL ,PATENT, TRADEMARK ETC. ALL OF THESE

Answer 1

Answer:

Probisions are generally accounted as per AS 29 but Provision for Doubtful debts are accounted as per AS 4, which specifies that when to create provision and how much to create and it is very subjective in nature and decided by management based on information available..

AS 26 : Intangible Assets deals with valuing intangabile asset like goodwill patent copyright and valued based on circumstances and availability of information in question.

Note : Self generated goodwill is not recorded in book