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It’s not the provision you deduct – it’s the MOVEMENT in the provision. And sometimes it’s a deduction but sometimes it’s an addition (deduction where the provision has gone down since last year, addition if the provision has increased )
The reason is that movements in provisions are ( sometimes ) attributale to a non-cash movement. Sometimes they are as a result of, for example, Debit the Provision, Credit Cash where a warranty claim has been paid in cash and we had previously provided for it.
You need a little T account showing balance brought forward, movement from the income statement, balance carried forward. The balancing figure will be cash. But if there is no cash payment during the year eg, no warranty claime settled by cash, then the movement in the provision account will be purely a “book adjustment”. And that’s non-cash, so needs to be adjusted either by adding it back ( increase in provision balance ) or by deducting ( where the provision account balance has decreased )
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