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Provision or Not

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Provision or Not

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by P2-D2.
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  • March 7, 2023 at 9:03 pm #680448
    poojakumar
    Participant
    • Topics: 6
    • Replies: 4
    • ☆

    Aston co. Has a company policy of cleaning up any environmental contamination caused by its operations, even though it is not legally obliged to do so.
    Does this create a provision or is there no provision required?

    March 9, 2023 at 7:25 am #680764
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7060
    • ☆☆☆☆☆

    Yes, a provision is required as they have a constructive obligation due to an established past pattern of practice, i.e. the policy of cleaning up.

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