Question: Question 3 HIL Ltd. was making provision for non-moving stocks based on no issues having occurred for the last 12 months upto 31.03.2020. The

Question 3 HIL Ltd. was making provision for non-moving stocks based on

Question 3 HIL Ltd. was making provision for non-moving stocks based on no issues having occurred for the last 12 months upto 31.03.2020. The company now wants to make provision. based on technical evaluation during the year ending 31.03.2021. Total value of stock $. 120 lakhs Provision required based on technical evaluation $. 3.00 lakhs. Provision required based on 12 months no issues $. 4.00 lakhs. You are requested to discuss the following points in the light of Accounting Standard (AS)-1: (i) Does this amount to change in accounting pol (ii) Can the company change the method of accounting?

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