Rent of Godown should be treated as Provision or Current Liability as per IFRS ?

As per ifrs 37 provision is created when there is a liability of uncertain amount and timing so if it is known that rent of certain amount have to be paid and if it's a rent payable so it will it's should be treated as current liability unless there is any uncertainty with it :)

Rent Of Godown is Renal expense and treated as expense in income statement & provision (If payment will made later). It is recorded as current liability in balance sheet if payment will made within next 12 months.

Dr  Rental Expense  xxx

Cr  Liability/provision   xxx

 

Hope you got the answer.

 

Provision should be created in advance as Rent is current liability if the payment is uncertain

Rent payable is a current liability. A provision is created only when the amount or time of payment is uncertain. For example tax liability - wherein the final decision on amount of tax payable rests with the tax department. In case of rent, both are certain and therefore it is a current liability.