![]() ![]() Such assets are required to be provided at the rate of 10 to 50% of the amount (depending upon period of overdue from 6 months to 3 years). ![]() ![]() The definition for the NPA is a credit instrument in respect of which, interest and principal installments have been due for a period of more than 6 months. Similarly non-performing assets (NPA) are to be separated. As per the RBI guidelines to NBFCs, the prudential norms for income recognition are- Income part due but not received within 6 months of due date is not to be booked, until actually received. This principle embodies prudence whereby all losses, whether likely or realised are recognized while profits are recognized when they are actually earned. Some of these accounting principles are set out below: 1. The majority of the companies follow these right principles of accounting, which are prudent and conservative. ![]()
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