AS 29 Basics | CA INTER | आज के दिन माथा में Tension | Provision in Accounting Explained Simply

A liability-type provision is recognized in the books only when three conditions are satisfied. Present Obligation from a Past Event There must already be a current obligation or responsibility arising because of something that happened in the past. Probable Outflow of Cash There should be more than 50% probability that money will have to be paid in the future. Reliable Estimate Possible The amount of the obligation should be capable of being estimated reliably. Examples like: “Poker Income Receivable” “Provision for future fire loss” are incorrect because accounting entries are passed only when the required conditions are actually met. #AccountingStandards #AS5 #AS29 #Provision #AccountingConcepts #CAStudents #CharteredAccountancy #CAInter #CAFinal #CommerceStudents #AccountingClasses #FinancialReporting #ProvisionAccounting #ContingentLiability #AccountingEducation #StudyCA #CAIndia #AccountsLecture #AuditAndAccounts #IndAS #LearnAccounting #AccountingTeacher #CommerceEducation #CAPreparation #AccountingBasics