Free lunch and General provision: Difference between pages

Latest revision as of 12:18, 29 October 2020

1. Financial reporting - balance sheet - liabilities.

A general provision is an accounting liability which is not linked with specific items.

For example a general bad debt provision, calculated as a global percentage of all receivables.

2. Tax.

Movements on general provisions are not allowable expenditure for tax purposes, nor taxable.

@@ Line 1: / Line 1: @@
-''"There's no such thing as a free lunch."''
+. ''Financial reporting - balance sheet - liabilities.''
-This statement implies that there is not normally any opportunity to earn immediate risk-free profits in financial markets.
+A general provision is an accounting liability which is not linked with specific items.
+For example a general bad debt provision, calculated as a global percentage of all receivables.
+. ''Tax.''
+Movements on general provisions are not allowable expenditure for tax purposes, nor taxable.
 == See also ==
-* [[Dislocation]]
+* [[Bad debt provision]]
-* [[Free rider]]
+* [[Liabilities]]
-* [[Moral hazard]]
+* [[Provision]]
-* [[No arbitrage conditions]]
+* [[Receivables]]
-[[Category:The_business_context]]
+[[Category:Accounting,_tax_and_regulation]]
-[[Category:Identify_and_assess_risks]]
-[[Category:Manage_risks]]
-[[Category:Financial_products_and_markets]]