PROVIS A provision is an existing liability of uncertain timing uncertain amount. The essence of a provision is that there is uncertainty abot the timing or amount of the future expenditure. It is this uncertainty that distinguishes provision from othe liabilities. The liability definitely exists at the end of reporting perion but the amount is indefinite or the date when the obligation is due is also indefinite, and in some cases, the payee canno be identified or determined. Actually, a provision may be the equivalent of an estimatec liability or a loss contingency that is accrued because it is both probahle and measurable

PROVIS A provision is an existing liability of uncertain timing uncertain amount. The essence of a provision is that there is uncertainty abot the timing or amount of the future expenditure. It is this uncertainty that distinguishes provision from othe liabilities. The liability definitely exists at the end of reporting perion but the amount is indefinite or the date when the obligation is due is also indefinite, and in some cases, the payee canno be identified or determined. Actually, a provision may be the equivalent of an estimatec liability or a loss contingency that is accrued because it is both probahle and measurable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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