Bad debt provision
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.