Nature of Reserves-Funds or Provisions
The amount saved is reserved for any of the following five purposes: (a) to meet future liabilities or losses; (b) to strengthen the financial position of the company; (c) for the fulfillment of a specific purpose; (d) to amortize a liability; (e) to replace a wasted asset. (f) There are two ways to reduce the amount available to distribute as […]
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