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What is the difference between provisions and contingencies? please give examples for each?

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Question added by Ahmed Abdel Aziz , IARCS Supervisor Consultant , KPMG
Date Posted: 2013/10/10
Moses Ajayi Murorun
by Moses Ajayi Murorun , Production Executives , Various Organizations

Provision is a way of making arrangement for something that is likely to happen in other to deal with it or tackle the effect example is provision for bad debt.

Contingencies are events that might happen in the future example is dividend and increase in salaries 

Deleted user
by Deleted user

Provision for something that is likely to happen - example is provision for bad debt or assets depricions.

Contingencies are events that might happen in the future example is dividend and increase in salaries

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