Daily Archives: August 7, 2021

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RBI extends timelines to companies for compliance of debt recast

Loans and advancesBy Surendra Naik August 7, 2021 Leave a comment

The corporate borrowers, whose loans were restructured under the first recast resolution plans under the RBI’s circular of 6 August 2020, can take another six months to achieve financial parameters laid down by the Reserve Bank of India. RBI on Friday notified to defer the target date for companies by six months to October 1,…

The difference between Reserves and Provisions explained

Accounting, Financial AnalysisBy Surendra Naik August 7, 2021 Leave a comment

Both reserves and provisions refer to the amount retained by an organization to deal with all possible contingencies in the future. In accounting parlance, reserves are appropriations out of profits and provisions are charges against profits. Although the IFRS Standards sometimes call provisions a ‘reserve’, they are not the same thing – a provision is…