A provision is recorded in a liability account, which is typically classified on the balance sheet as a current liability. The accounting staff should regularly review the status of all recognized provisions, to see if they should be adjusted. In American English, the word provision is used as a synonym for “expense”, especially when it […]
Month: October 2022
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
Contingency planning is a very important function of the accounting department and financial reporting procedure. And provisions are the essence of contingency planning that help the entities and individuals estimate an expense or loss in anticipation. The IAS 12 of International Financial Reporting Standards defines deferred tax payments as the future expense concerning the Taxable […]