Technical factsheet: provisions and contingencies and breaches of law or regulation

ACCA has been made aware of third-party consultants contacting members’ clients informing them of the potential to reduce tax liabilities (or claim tax back from prior accounting periods) through the recognition of provisions in the financial statements. The purpose of this technical factsheet is to remind members of the recognition criteria contained in UK accounting standards and to carefully scrutinise the facts of each case where a provision has been recognised to ensure the provision is appropriate.