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Hi,
i have a question like.this. For example the obligation is probable but it can not be measured with reliability. in this case we should take it into account as contingent liability?
Yes 🙂
A provision is when you are not certain as to the amount or as to the timing.
Here, we are not certain as to whether it will actually be payable and therefore it is a contingent liability.
Because it is ‘probably’ we will show it as owing and will therefore have a provision.
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