yasaswi gomes (My grammar is 💯 good I) 07 April 2021
Hi, I am sure it will be like this
Provision- will be crated when the provision definition is met. Examples, warranties, restructuring (dismantling) provisions.
C. Asset- when the economic benefit inflow is possible or uncertain, contingent asset is disclosed. Ex. If 0% of receivables are doubtful but u r sure you can recover, provision is created, if it isn’t uncertain about the rest 50%, the amount is disclosed as c. Asset
C. Liability- this is also same, when your certain that you need to pay legal damages in the future, you create a provision. If your uncertain, disclose c. Liability amount.
When chances of economic benefit inflow or outflow is remote, do nothing,