In: Accounting
- Accounting for Receivables/allowance for doubt ful account :
Companies should reconsider the credit period for all receivables outstanding. We should give more credit period for the Debtors due COVID-19. This leads to less provisioning on Doubt ful debts. Until the situation is normalised, we should not provide more provision on Doubt ful debts. In consequence, the expenditure on Income statement decreases so that Earnings appeared to good in financial statemets
- Accouting for acquisions of property plant and equipment and Accouting for Depreciation
We capitatlised the Property plant and equipment acquired. and we n eed to charge lower depreciation possible as per IFRS and as per company policy due to no production is going on during COVID period. Lower depreciation leads to Better Earings reflection in financial statements.
- Repurchasing shares of stock :
Repurchasing of shares leads to build a confidence in Investors and their trust on company remains increases.