The option for Allow Balances to be carried forward is misleading in EC-PCA.
1. Why the option for balance carry forward allowed or Balance carry forward not allowed is given.
2. End of every year, balances need to be carry forwarded to profit centres, hence the p/l account becomes zero increasing the retained earning account, which is given in the option for maintain retained earnings account.
3. What are the scenario for which balance carry forward for a profit centre is not allowed.