Is voluntary retirement compensation an irregular or non- recurring expense hence needed to be added in the given figure of rupees 80000?? Please explain
Dear Student,
Yes, VRS (Voluntary retirement scheme ) is Irregular and Non recurring in nature expense, Because Voluntary retirement scheme is a method used by companies to reduce surplus staff.
Therefore it should be added to profit, but in the given question it is loss so the figure will be as follows:
-80,000 (loss) + 1,10,000 (VRS) = 30,000 ( Profit).
Because loss is negative figure and adding VRS will reduce the loss
Regards.
Yes, VRS (Voluntary retirement scheme ) is Irregular and Non recurring in nature expense, Because Voluntary retirement scheme is a method used by companies to reduce surplus staff.
Therefore it should be added to profit, but in the given question it is loss so the figure will be as follows:
-80,000 (loss) + 1,10,000 (VRS) = 30,000 ( Profit).
Because loss is negative figure and adding VRS will reduce the loss
Regards.