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- Apr 6, 2017
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We have receivables with no movement from past 10 years . This year auditors want to qualify our Financial Statements stating the amount of Provision required for doubtful debts. To remove this qualification, I am suggesting to make provision for doubtful debts by debiting retained earnings as amounts
1. belong to previous years (Prior period errors)
2. Since this does not belong to current year- why should I affect my Pl of current year.
please suggest how to make my case strong
1. belong to previous years (Prior period errors)
2. Since this does not belong to current year- why should I affect my Pl of current year.
please suggest how to make my case strong