Provision and Reserves

Ask anything :-

Anyone have any query related to their aims anyone can ask me ?

Today I come with the following information about Provision & Reserves :-

Provision:- It is the amount that we collect for expected loss but don't have accurate or fixed value.

For viz. If u buy a machinery (Assets) u know that the estimated life is 20 years and the machinery got useless and it only have scrap value.

Reserves:- It is the value of amount that we save from Net Profit and saves for the future uncertainties.

For viz. If the company want to expand their business so they can the reserves for this activity.

If anyone have query related to this topic they can ask me at my email id Saifikonan@gmail.com