Provisions in Accounting Credits to Sasa Pejic, MSc, follow him for more practical finance content. Here's the original post ----- Provisions are a vital to protecting business from unexpected financial hits. A provision is an amount set aside from a company's profits to cover future liabilities or losses that are probable but uncertain in timing or amount. It helps businesses prepare for potential financial obligations. Business owners should know: -> By setting aside funds for potential future expenses, provisions help businesses manage risks effectively. -> Proper provisions ensure compliance with accounting standards and regulations, avoiding legal and financial penalties ---- Follow our page Accounting ABCs to learn more about the fundamentals of Accounting
Interesting!
Good piece of information material shared.. Very insightful indeed!
DIRECTEUR COMPTABLE
1moThanks for sharing