Accounting Treatment for yearly festival bonus.

NishiNishi BangladeshRegistered Posts: 2
Can anyone suggest me logically why yearly festival bonus should be deferred each month rather than charged it directly to the specific month of payment.

Comments

  • CeeJaySixCeeJaySix Well-Known Registered Posts: 645
    Presumably there is work throughout the year leading up to this one event that triggers the bonus; without the prior work the bonus would not be payable, therefore the cost is spread over the period in which the work was done.
    Nishi
  • NishiNishi BangladeshRegistered Posts: 2
    Thanks CeeJaySix for your valuable comments......
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