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Provision

Forums › FIA Forums › FA2 Maintaining Financial Records Forums › Provision

  • This topic has 2 replies, 2 voices, and was last updated 3 years ago by maximus07.
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  • June 10, 2021 at 4:41 am #624343
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Provisions are reliabily measured means?

    June 10, 2021 at 4:54 pm #624452
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    Provision = a liability that is of uncertain timing or amount.

    If a provision is to be included in a set of financial statements there must be some evidence as to its existence and amount – otherwise people could set up whatever fictitious provisions they wanted so as to manipulate profits.

    June 10, 2021 at 5:02 pm #624456
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Right sir. Thank you.

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  • The topic ‘Provision’ is closed to new replies.

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