Accounting treatment of legal expenses incurred by banks in suit filed accounts - RBI - Reserve Bank of India
Accounting treatment of legal expenses incurred by banks in suit filed accounts
DBOD. BP. BC. 24 / 21.04.018/ 2003- 2004 13 September 2003 All Commercial Banks Dear Sir, Accounting treatment of legal expenses It has been observed that banks follow divergent practices in respect of accounting of legal expenses incurred in case of suit filed accounts. The issue was examined in consultation with Institute of Chartered Accountants of India and it has been decided that banks should adopt the following guidelines for accounting legal expenses in suit filed accounts :
2. Banks may adopt the above procedure in a uniform manner from the year ending 31 March 2004. 3. Please acknowledge receipt. Yours faithfully, (M. R. Srinivasan) |