accounting standards and difference between provision and reverses

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Accounting standards dictate how financial transactions are recorded and reported. Provision is an estimated liability, while reserve is a portion of profits set aside for specific purposes.

Accounting standards provide guidelines for how financial transactions should be recorded and reported.
Provision is an estimated liability that a company sets aside to cover potential future expenses.
Reserve is a portion of profits that a company sets aside for specific purposes, such as future investments or contingencies.
Provision is recognized when there is a probable future obligation and the amount can be reasonably estimated.
Reserve is not a specific liability, but rather a general allocation of profits for future use.
Both provision and reserve are important components of a company's financial statements, reflecting its financial health and future obligations.