alleryStart learning →A Rs 2 lakh expected gain on selling a plant: effect on the provision?
ACuts it by Rs 2 lakh
BNone; gain is ignored
CAdds Rs 2 lakh to it
DCancels it fully
Answer & Solution
Correct answer: B. None; gain is ignored
Gains on expected disposal of assets are ignored in measuring a provision and are recognised when the asset standard requires.
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