accounting & auditing

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krissun

krissun (Querist)
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21 May 2009 anybody can explain me the difference between amortization & provision & reserves ?

CA.Pujah

CA.Pujah (Expert)
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21 May 2009 AMORTIZATION: is writing off some misc asset/ prelim exp/ such

PROVISION: is a charge to profit created for an expense or liability, like prov for contingent liab/ prov for bad debts.

RESERVE : is an appropriation to profit, which is something like you are keeping aside your retained profit for some specified/ unspecified purpose.