Provision For Bad Debt

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April 23, 2016 at 11:24 am #312339
Muslim Farooque
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Is a provision for Bad debt or an allowance for bad debt allowed under current accounting standards or is only an impairment is necessary
April 23, 2016 at 2:05 pm #312359
MikeLittle
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Provisions (or allowances as they are sometimes called) are allowable

An impairment suggests that the asset HAS fallen in value.

A provision is made when there is a suspicion that the asset has fallen in value
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