Comments

  1. avatar says

    Hello sir,

    Thank you for this lecture. Please, will the provision be deduct from the profit?
    Example: Provision of $100 was made to pay back customers that will return faulty TV.
    My question is will this $100 be deduct from the profit in income statement.

    Thank you.

    • Profile photo of John Moffat says

      Yes, that is correct (provided, of course, that is is classed as “virtually certain”) :-)
      (although in F3, you are unlikely to be asked for the entry – you will just be tested on the rules as to whether you recognise, disclose as a note, or do nothing :-) )

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