As the double entry for a provision is to debit an expense and credit the liability, this would potentially reduce profit to $10m. Then in the next year, the chief accountant could reverse this provision, by de
Byline: FERDIE J. MAGLALANGManila Bulletin
Can we make a provision for unused budget for advertising services? If yes, in what amount? Answer to question #1 No, you cannot, unless you have some conditions in the contract with the advertising company about minimum billing per year. If there are no such conditions, then there’sno pa...
As the double entry for a provision is to debit an expense and credit the liability, this would potentially reduce profit to $10m. Then in the next year, the chief accountant could reverse this provision, by debiting the liability and crediting the statement of profit ...