OSIER M/J 17 Kaplan kit

Charge for the year refers to the expense in SoPL (and I think is better called "expense" rather than charge). Utilisation of a provision is just that! So for example, a company provides $100k as at 31 March 20X1 for employees who have been informed that they will be made redundant w.e.f. 30 June 20X2. The costs of redundancy "belong" to the y/e 31 March 20X1 - Dr Expense (SoPL) and Cr Provision (SoFP) When staff are paid redundancy: Dr Provision and Cr Cash - i.e. the provision is utilised. If provision is only an estimate there will be a balance on the provision a/c at 31 March 20X2. Any underprovision will be expense in year to 31 March 20X2 - and any overprovision a reduction.