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      Question

      A company has an ongoing CSR project that remains

      unspent at year-end. What is the correct treatment?
      A Expense to P&L Correct Answer Incorrect Answer
      B Transfer to “Unspent CSR A/c – Ongoing Projects” within 30 days and spend within prescribed time Correct Answer Incorrect Answer
      C Carry forward as prepaid Correct Answer Incorrect Answer
      D Transfer to Capital Reserve Correct Answer Incorrect Answer
      E Adjust against retained earnings Correct Answer Incorrect Answer

      Solution

      Companies Act/CSR Rules require transfer to a special account for ongoing projects within timelines.

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