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What is difference between provision and accrual ?

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Question ajoutée par Ibrahim Akram , Senior Specialist ( Budgeting , Costing and Reporting) , Maaden
Date de publication: 2016/12/30
Beulah Dal
par Beulah Dal , Cost Control Engineer/Quantity Surveyor , Urbacon Trading and Contracting

Accruals are made for both receipts and payments, whereas provisions are made only for expected future expenses.

Ibrahim Akram
par Ibrahim Akram , Senior Specialist ( Budgeting , Costing and Reporting) , Maaden

All accrued expenses have already been incurred but are not yet paid for.Provisions are far less certain, but they are not completely uncertain. Companies elect to make provisions for future obligations where the specific amount or timing is unknown. 

Accruals are made for both receipts and payments, whereas provisions are made only for expected future expenses.

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