ACCOUNTING FOR PROVISION BASED ON INTERNATIONAL STANDARDS

Abstract

This article provides a definition of provision in accordance with international standards and the aspects that characterize them. The article discusses the features of assessed obligations, the main provisions related to assessed obligations in IFRS 37, the distinguishing characteristics of provision compared to other types of obligations, the procedure for recognizing provision (reserves), the levels for assessing the probability of resource outflow, and proposes five stages for recognizing an assessed obligation related to KPI-based incentives.