Wht is difference in Accurals & Provisions?
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Accurals & Provisions
The entries are the same. The difference is that we call it a provision when we are not certain of the amount or we are not certain when it will be payable. (For example, tax is likely to be called a provision - at the end of the year we will estimate the tax owing, but we will not be certain until the tax people have actually confirmed it - this is unlikely to have happened by the time the accounts become final)
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