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provision

This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.

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November 27, 2016 at 1:45 pm #351875
adurich
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.hello
could you please tell me what would be the debit side if refurbishment provision is created (liability on credit side)
do we debit asset with that amount…but refurbishment is in future ..please comment
November 27, 2016 at 2:01 pm #351884
MikeLittle
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All provisions relate to probable (and sometimes imponderable) future events
Is the entity committed to the refurbishment?
Then probably debit the asset account
If not committed … it would be inappropriate to make a provision
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