NOTES


CA-Foundation > Principles and Practice of Accounting > Theoretical Framework -Capital & Revenue Expenditures & Receipts and Contingent Assets and Liabilities (Old & New)

Provision and Contingent Liability.



Ans.
Provision is a present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation. On the other hand, a Contingent liability is a possible obligation that may or may not crystallize depending on the occurrence or non-occurrence of one or more uncertain future events.

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Notes of Theoretical Framework -Capital & Revenue Expenditures & Receipts and Contingent Assets and Liabilities (Old & New)



  1. Provision and Contingent Liability.
    see in detail

  2. Liability and Contingent liability.
    see in detail


CA-Foundation - Principles and Practice of Accounting:

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