Bad debt provision: Difference between revisions
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An item in the balance sheet of a reporting entity, reflecting the estimated amount of total trade receivables which are expected to be irrecoverable. | An item in the balance sheet of a reporting entity, reflecting the estimated amount of total trade receivables which are expected to be irrecoverable. | ||
For external reporting purposes, this liability is usually netted off the gross amounts of trade receivables, only the net balance (after provisions) being disclosed externally. | |||
2. ''Balance sheet - liabilities - | |||
2. ''Balance sheet - liabilities - progression.'' | |||
More loosely, the change in this balance sheet item over a period of time. | More loosely, the change in this balance sheet item over a period of time. | ||
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3. ''Balance sheet - liabilities - determination.'' | 3. ''Balance sheet - liabilities - determination.'' | ||
The basis or process of determining this balance sheet | The basis or process of determining the amount of this balance sheet item. | ||
== See also == | == See also == | ||
* [[Bad debt expense]] | * [[Bad debt expense]] | ||
*[[Bad debt]] | * [[Bad debt]] | ||
* [[Determination]] | * [[Determination]] | ||
* [[Gross]] | |||
* [[Net]] | |||
* [[Provision]] | * [[Provision]] | ||
* [[General provision]] | * [[General provision]] | ||
Revision as of 20:43, 26 March 2021
1. Financial reporting - balance sheet - liabilities.
An item in the balance sheet of a reporting entity, reflecting the estimated amount of total trade receivables which are expected to be irrecoverable.
For external reporting purposes, this liability is usually netted off the gross amounts of trade receivables, only the net balance (after provisions) being disclosed externally.
2. Balance sheet - liabilities - progression.
More loosely, the change in this balance sheet item over a period of time.
3. Balance sheet - liabilities - determination.
The basis or process of determining the amount of this balance sheet item.
