An infrastructure company building highways has a contract to construct road of 25 kms . The project is likely to be completed in 4 years . It has approached a bank seeking finance . The bank has requested them to prepare projected yearly accounts whereas the company has argued that since the project shall be completed in 4 years , projected accounts should be prepared for thr end of the project . Is the company correct in its view? Give reasons.

An infrastructure company building highways has a contract to construc

1.	An infrastructure company building highways has a contract to construct road of 25 kms . The project is likely to be completed in 4 years . It has approached a bank seeking finance . The bank has requested them to prepare projected yearly accounts whereas the company has argued that since the project shall be completed in 4 years , projected accounts should be prepared for thr end of the project . Is the company correct in its view? Give reasons.
Answer» Solution :No , the COMPANY is not correct because the bank requires YEAR -wise projected accounts firstly , to assess the time when the funds shall be requiredand also how much funds shall be REQUIRED, and secondly it shall be in a position to MONITOR the progress of the project at regular INTERVALS.

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