Which of the following statement (s) is/are true in respect of provision as per the provisions of Companies Act?
Answer & explanation
Correct answer: option 3
As per Schedule III of the Companies Act 2013, the amount of provision settled within 12 months from balance sheet date or within operating cycle period from date of its recognition is classified as short term provisions and shown under current liabilities on the face of balance sheet. Others are depicted as long-term provisions under non-current liabilities on the face of balance sheet.