|Whether it is necessary to provide (Corporate Social Responsibility) CSR expenses in the books of account on accrual basis, considering AS–29 “Provisions, Contingent Liabilities and Contingent Assets”?
|Click here to read the full answer of the expert
|CA. H. N. Motiwalla
|128 of Companies Act
|Companies Act, contingent assets, contingent liabilities, Corporate Social Responsibility
Section 128 of the Companies Act, 2013 mandates every company to maintain its books of account on accrual basis. As per AS-1 “Disclosure of Accounting Policies” on accrual basis, cost and revenue are accrued that is recognised as they are incurred or earned and recorded in the financial statements of the periods to which they relate: