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Are provisions and long-term debts similar? If not, what are the differences between the two?

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Question added by Jemmy Saberola , Receptionist cum Accounts Assistant , Horwath Al Muhanna Audit & Advisory Services
Date Posted: 2013/09/10
taha amer
by taha amer , Finance Manager , Arabia ‎Holding

long-term debet is: loans (liability) within from owner equity in balance sheet.

 

 

provisions are: the deduction from revenue  to avoid losses in some current assets in incom statement , also in balance sheet like reduce form current assets.

 

 

they are totally differentthe main difference that if you decrease assets provisions you will get profit without any efforts ;-)

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