'If LIC has to set apart a separate
outlay for huge arrears on
upgradation of pension for all old pensioners ".
YES a good accounting practice is to provide for anticipated liability = contingent liability which is likely to arise.
This subject came to fore at least with the Board's decision for 100% DA and up-gradation 'judgment against LIC.
of pension and on 3 HC's and SC's adverse
of pension and on 3 HC's and SC's adverse
Prudence demands such provisions should have been made from time to time.
Only actuaries or Accountants can throw more light on this aspect.
T SAMPATH IYENGAR
BANGALORE