Why would a company want to recognise a provision- after all that will reduce future profits!

Let me explain why IAS37 Provisions regulates the recognition of provisions, and why some companies would want to recognise such liabilities and expenses to suppress the current years profit.

[@jnkvngz2965]

the creative accounting bit of this is the most interesting!

[@tomclendonaccasbronlinelec7226]

Thank you !

[@kombastephen8723]

Sure, it helps

[@tomclendonaccasbronlinelec7226]

That’s good to know