Publication: The accounting and fiscal treatment of provisions
Date
Journal Title
Journal ISSN
Volume Title
Publisher
ASEM
Abstract
Description
GROSU, Veronica, ADUMITRESEI, Elena Lacrimioara. The accounting and fiscal treatment of provisions. In: Prospects of accounting development: the young researcher's view [online]: international scientific student conference, November 22, 2017: Collection of articles. Chişinău: ASEM, 2018, pp. 79-85. ISBN 978-9975-75-895-6.
This paper treats the issue of establishment.by entities of litigation provisions, customer guarantees, restructuring, taxes or other provisions. The reason we have chosen as a subject of debate the constitution of provisions, results in the importance that they have in the activity of the economic entity. The purpose of our research is to demonstrate, from the perspective of practice, the importance of calculating and recording in the accounting of provisions under national and international law. The provisioning should take into account the principle of prudence, according to which "depreciation is recognized, regardless of whether the result of the financial year is loss or profit. Registration of impairment adjustments or loss of value is perform on the expense account regardless of their impact on the profit and loss account ". JEL: M 41, M 48
This paper treats the issue of establishment.by entities of litigation provisions, customer guarantees, restructuring, taxes or other provisions. The reason we have chosen as a subject of debate the constitution of provisions, results in the importance that they have in the activity of the economic entity. The purpose of our research is to demonstrate, from the perspective of practice, the importance of calculating and recording in the accounting of provisions under national and international law. The provisioning should take into account the principle of prudence, according to which "depreciation is recognized, regardless of whether the result of the financial year is loss or profit. Registration of impairment adjustments or loss of value is perform on the expense account regardless of their impact on the profit and loss account ". JEL: M 41, M 48
Keywords
provisions, performance, economic entity, national and international accounting rules