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Asked by Mukesh on :Mar. 16, 2018

When does the provision should be recognized?

When does the provision should be recognized?

When does the provision should be recognized?

0

Jeeba Mar. 16, 2018

An organsiation should be recognise provision if following conditions are fulfilled.

If there is probability of an outflow of resources to settle the obligation; and
A reliable estimate can be made of the amount of the obligation.
An enterprise has a present obligation as a result of past event;

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