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What is the difference between accruals and provisions?

Record-to-Report (R2R) · Article FAQ

Detailed Explanation

An accrual usually covers a cost or income that has been incurred or earned but not yet invoiced or settled, with fairly reliable amount and timing. A provision usually covers a liability with more uncertainty about amount or timing. The exact rules depend on the accounting standard you follow.

Disclaimer: This material is for educational purposes only. Every financial situation is unique. Consult with a certified professional before making significant decisions.