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What is the difference between OCL and Provision ?

Anand (CWA (final) Asst Manager) (49 Points)

09 December 2009

What is the difference between "Other Current Liabilites" and "Provisions" ?

What 'Provisions' should contains for presentation of Schedule VI ?

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2 Replies

Jag Bhushan Sharma (Faculty in a B-School) (633 Points)
Replied 10 December 2009

The basic difference between a current liability and provision is that amount payable has already been settled in case of liabilities but in case of provision it is tentative or just an estimate, final amount is still to be settled.

Provisions to be shown in B/S as per Schedule 6 are:1. provision for taxation, 2. proposed dividends, 3. provision for contingencies and 4. provision for provident fund, insurance and other staff welfare schemes.