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When a company required to put a policy in place for valuation of receivables it might use aging report >> true or false ??

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تم إضافة السؤال من قبل ahmed amin , Audit supervisor , KPMG
تاريخ النشر: 2015/02/28
Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, An organization can evaluate its receivables by considering the relevant aging time.

Naveed Abbas Rana
من قبل Naveed Abbas Rana , Accountant/ Consultant , Aboriginal Peoples Television Network

Its True receivable aging mostly used to control the debtors recovery policy.

Imran Adwani
من قبل Imran Adwani , Head of Internal Audit , Abdulla Bin Zayed Investment Group

True. Since the management wants to have an idea of good, bad and doubtful debts based on their business experience. Accordingly, it will provide the provision for doubtful debts and writing off bad debts. However, the entity has to value its receivables at least at year end.

Mohammed Mustafa
من قبل Mohammed Mustafa , Senior Accountant , Tc Group Of Companies

True.Because, Every company depends on a style to follow up the credit limit based on valuation of receivables.Use of aging the receivables will control the debtors O/s.

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