- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi,
i have a question like.this. For example the obligation is probable but it can not be measured with reliability. in this case we should take it into account as contingent liability?
Yes 🙂
A provision is when you are not certain as to the amount or as to the timing.
Here, we are not certain as to whether it will actually be payable and therefore it is a contingent liability.
Because it is ‘probably’ we will show it as owing and will therefore have a provision.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.