Thanks for the clarification.
I have similiar question on how write-off are reported in PnL and balance sheet
considering this for simplicity, person X has 1 crore loan from a Company, when he start defaulting, companies start providing some % of loan as provision. I can see, Companies are reporting the provision amount in PnL under Impairment on financial instruments , so in this case, company will show 1 crore [For simplicity I am assuming 100% provision provided at one go] as impairment in the PnL and similiarly same one crore as netted and balance is shown under Loans in Balance sheet.
But I am little confused what will happen when company chose to write-off 100% of the loan after 100% is provided as provision? What are the line items that will get changed in both statements?
And as far as I know, When provisions are released this is reported in negative under Impairments in PnL and write-backs are reported under other income. Is this understanding correct?
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