IFRS sometimes refers to allowances as
A)revenues.
B)discounts.
C)provisions.
D)reserves.

Question

Quizplus · Accepted Answer

IFRS refers to allowances as provisions, which are liabilities that are recognized in financial statements. These are created when there is uncertainty regarding the timing or amount of an expense that may be incurred in the future. Provisions are not the same as reserves, which are created to set aside profits for specific purposes, and are not recognized as liabilities on the balance sheet.

IFRS Sometimes Refers to Allowances as