Liabilities

Liabilities

Liabilities

In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. Liabilities of uncertain value or timing are called provisions.

In financial accounting, provision is a word that creates an ambiguous account title. In U.S. GAAP, provision means an expense, while in IFRS, International Financial Reporting Standards, it means a liability (Robinson, 2004). So, in the U.S., Provision for Income Taxes means the same thing as Income Tax Expense, ...