Question

What is Provision and Reserves??​

Answer 1

What is Provision and Reserves

A reserve is an appropriation of profits for a specific purpose. The most common reserve is a capital reserve, where funds are set aside to purchase fixed assets.

In short, a reserve is an appropriation of profit for a specific purpose, while a provision is a charge for an estimated expense.

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Answer 2

Answer:

A reserve is an appropriation of profits for a specific purpose. ... A provision is the amount of an expense or reduction in the value of an asset that an entity elects to recognize now in its accounting system, before it has precise information about the exact amount of the expense or asset reduction