General provision: Difference between revisions
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imported>Doug Williamson (Clarify wording.) |
imported>Doug Williamson (Expand to deal with non-taxable credits.) |
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For example a general bad debt provision, calculated as a global percentage of all receivables. | For example a general bad debt provision, calculated as a global percentage of all receivables. | ||
Movements on general provisions are not allowable expenditure for tax purposes. | Movements on general provisions are not allowable expenditure for tax purposes, nor taxable. | ||
Revision as of 10:27, 27 November 2014
Accounting and tax.
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.
Movements on general provisions are not allowable expenditure for tax purposes, nor taxable.
